Hero MotoCorp has revealed that Sustainability and Emerging Mobility is priority area for the company
Hero MotoCorp is leaving no stone unturned in creating a wider presence for itself in the electric vehicle (EV) segment in India. The world’s largest two-wheeler producer is looking for broader stakes in the electric mobility space of the country. In line with its vision of “Be the Future of Mobility”, the company has announced fresh investments in Ather Energy.
The board of Hero MotoCorp has approved a new investment of up to Rs. 420 crore in the Bengaluru-based EV startup in one or more tranches. Prior to the proposed investment, Hero MotoCorp’s shareholding in Ather Energy stood 34.8 percent. Ather Energy are the makers of one of the best selling electric scooter in India.
Hero MotoCorp Investments in Ather Energy
Post this fresh investment, shareholding will increase and exact shareholding will be determined upon completion of the capital raise round by Ather. This is the fifth time Hero MotoCorp is investing in Ather. Hero MotoCorp first invested in Ather back in 2016 when it became a strategic partner.
Earlier in July 2020, Hero MotoCorp invested Rs 84 crore to raise its stake in the EV startup. The company has also invested $12 million (Rs 89 crore) as a part of the Series D round in Ather Energy.
Hero was one of the early investors in Ather Energy and has continued to expand its association over the years. The company is also exploring collaborations with Ather in various other spheres such as technology, charging infrastructure and sourcing.
Upcoming E-scooter from Hero MotoCorp
Although Hero hasn’t officially set into the EV space by itself, it has formed strategic alliances with external EV manufacturers like Ather Energy and Gogoro. The company is gearing up to unveil its first electric vehicle in March this year. The vehicle is being developed at its R&D set-up – the Center of Innovation and Technology (CIT) in Jaipur and the Tech Center Germany (TGG) near Munich in Germany.
The upcoming electric scooter from Hero MotoCorp will be produced at the company’s manufacturing facility at Chittoor in the southern Indian state of Andhra Pradesh. Hero MotoCorp is currently engaged in a legal battle with Hero Electric over the use of its brand name ‘Hero’ for electric two-wheelers.
In October 2021, Hero MotoCorp became the first company to adopt Ather Energy’s fast-charging technology for its own upcoming electric scooter slated to be launched in a few months. Coming to Ather Energy, the startup was established in 2013 and it is in the business of designing, manufacturing, producing, selling, servicing, software development, and software management, in relation to electric automobiles and charging infrastructure.