Hero MotoCorp Doubles Down on EV Bet with ₹1,000 Crore Additional Investment in Ather Energy

In a major move to solidify its position in the rapidly expanding electric vehicle (EV) segment, India's premier two-wheeler manufacturer, Hero MotoCorp Limited, today announced that its Committee of Directors has approved an additional investment of up to ₹1,000 crore in its associate company, Ather Energy Limited.

The transaction highlights Hero MotoCorp's long-term commitment to the premium electric two-wheeler market, backing one of India's most prominent EV manufacturers as it scales up production and infrastructure.

Transaction Mechanics and Approvals

The transaction will be executed via cash consideration. Hero MotoCorp will subscribe to equity shares or other eligible securities-including compulsorily convertible preference shares and warrants-proposed to be issued by Ather Energy on a preferential allotment basis.

While Hero MotoCorp itself does not require any direct government or regulatory clearances for this subscription, the transaction remains subject to necessary approvals from the Board of Directors and Shareholders of Ather Energy. The acquisition is expected to be completed within 15 days of Ather obtaining the final necessary approvals.

Deepening an Existing EV Partnership

Hero MotoCorp is already a major stakeholder in the Bengaluru-based EV manufacturer. As of June 30, 2026, Hero MotoCorp held a 29.48% stake in Ather Energy on a fully diluted basis.

Because Ather is an existing associate company of Hero MotoCorp, the transaction qualifies as a related party transaction under Indian regulatory definitions. However, the company clarified that no promoters, promoter groups, or group companies of Hero MotoCorp have any direct personal interest in the target entity. Furthermore, the transaction is being conducted strictly on an "arm's length" basis.

The final impact on Hero MotoCorp's total percentage shareholding post-investment remains dependent on the final pricing of the preferential issue and any subsequent issuances approved by Ather's board.

Ather Energy's Rapid Financial Ascent

Ather Energy, which was incorporated in India on October 21, 2013, has emerged as a key player in the design, manufacture, and servicing of smart electric vehicles. Beyond manufacturing its popular line of electric two-wheelers, Ather operates its own charging network and manages energy storage systems, battery distribution, and other ancillary electric power services.

The investment comes on the back of massive growth at Ather Energy over the past three fiscal years, driven by widespread domestic adoption. The company's financial records showcase an impressive, compounding upward trajectory in top-line growth:

FY24 Turnover: ₹1,753.80 crore
FY25 Turnover: ₹2,255.00 crore
FY26 Turnover: ₹3,671.76 crore

By infusing up to ₹1,000 crore of fresh capital, Hero MotoCorp is providing Ather with substantial financial runway to support its ongoing research, software development, plant capacity expansions, and the roll-out of its fast-charging grid across the country.

Shares of Hero MotoCorp Limited was last trading in BSE at Rs. 4884.60 as compared to the previous close of Rs. 4953.30. The total number of shares traded during the day was 50995 in over 5021 trades.

The stock hit an intraday high of Rs. 4956.35 and intraday low of 4870.00. The net turnover during the day was Rs. 250587374.00.

Source : Equity Bulls

Keywords

HeroMotoCorp INE158A01026 2Wheelers EV AtherEnergy Investment