Hero MotoCorp Ltd. is investing Rs 420 crore in Ather Energy, an electric scooter maker, at a time when India’s largest two-wheeler manufacturer is preparing its own product for the domestic EV market.
According to a regulatory filing Friday, the company’s board of directors has approved the investment in one or more tranches. Hero MotoCorp owned 34.8 percent of the Bengaluru-based startup prior to the proposed investment. “Following the investment, the shareholding will increase, and the exact shareholding will be determined when Ather completes the capital raise round.”
This is the fifth time Hero MotoCorp has invested in Ather Energy, despite the fact that the company has yet to enter the electric two-wheeler market. It made its first investment in 2016, when it became a strategic partner. Hero MotoCorp will be the first company to use Ather Energy’s fast-charging technology for its own electric scooter, which will be released in March 2021.
The Delhi-based firm stated that it is looking into collaborations with Ather Energy in areas such as charging infrastructure, technology, and sourcing. It has also partnered with the Taiwan-based battery swapping company Gogoro Inc, and it claims to be working on “building the entire EV ecosystem.”
“We were one of the early investors in Ather Energy and have continued to expand our association over the years,” said Swadesh Srivastava, head, emerging mobility business unit, at Hero MotoCorp. “We are excited to see the growth of Ather Energy in recent years. Our aim is to expand the Hero MotoCorp brand promise and make EV ownership a convenient, hassle-free, and rewarding experience for customers across the world.”
The electric two-wheeler market is heating up, with new products being released by both startups and traditional automotive companies.
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