Hero MotoCorp board approves investment of up to Rs 420 cr in Ather Energy

Leading two-wheeler company Hero MotoCorp on Friday announced a new investment of up to Rs 420 Crore in Ather Energy. The company’s board has approved the investment in one or more tranches, it said in a regulatory filing.

Prior to the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8% (on a fully diluted basis). Post the investment, the shareholding will increase and the exact shareholding will be determined upon completion of capital raise round by Ather, the automaker added.

Hero MotoCorp is an early investor in Ather Energy since 2016. The company is also exploring collaborations with Ather Energy in various spheres, such as charging infrastructure, technology and sourcing, it said.

Commenting on the development, Swadesh Srivastava, Head – Emerging Mobility Business Unit, Hero MotoCorp said, “We were one of the early investors in Ather Energy and have continued to expand our association over the years. 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.” 

Meanwhile, the automaker is all set to launch its first Electric Vehicle (EV) in the month of March this year. The vehicle is being developed at the company’s world-class R&D set-up – the Center of Innovation and Technology (CIT) in Jaipur and the Tech Center Germany (TGG) near Munich – and will be produced at the company’s manufacturing facility at Chittoor in the
southern Indian state of Andhra Pradesh.

"Through its investments and partnerships with external partners like Ather Energy and Gogoro Inc., Hero MotoCorp is also working towards building the entire EV ecosystem – from products to technology, to sales, service, customer care, operations, and innovation," the company further stated. 

Share of Hero MotoCorp on Friday closed 1% down at Rs 2,566.70 apiece on BSE.