Hero MotoCorp Boosts Stake in Ather Energy with $16.8 Million Investment
Bangalore, December 15, 2023 – In a strategic move to strengthen its position in the electric vehicle (EV) market, Hero MotoCorp, one of India’s leading two-wheeler manufacturers, is set to invest $16.8 million in Ather Energy. The investment will grant Hero an additional 3% stake in Ather, raising its total stake from the current 36.6% to 39.7%.
This development follows Ather’s successful fundraise of INR 900 crore (approximately $108 million) earlier this year in September. The funds were raised through a rights issue and involved contributions from existing shareholders, including Hero MotoCorp and Singapore’s GIC.
The increased investment signals Hero MotoCorp’s continued commitment to Ather Energy’s growth and highlights the strategic importance of EVs in Hero’s portfolio. As the automotive industry undergoes a transformative shift towards sustainable mobility, partnerships like these play a crucial role in fostering innovation and market leadership.
Despite the positive investment news, Ather Energy reported a net loss surge of over 150% in the fiscal year 2023. This underscores the challenges and competitive dynamics within the electric vehicle sector. However, both companies remain optimistic about the future, leveraging synergies to address the evolving needs of the Indian market.
Ather Energy, based in Bengaluru, has been a key player in the electric vehicle space, known for its advanced and innovative electric scooters. Hero MotoCorp’s increased stake not only reaffirms its confidence in Ather’s potential but also signifies a broader industry acknowledgment of the growing importance of sustainable transportation solutions.
The collaboration between Hero MotoCorp and Ather Energy aligns with the broader industry trend of traditional automakers seeking strategic partnerships and investments in the electric vehicle sector. As the demand for electric vehicles continues to rise, such collaborations are poised to drive innovation, market penetration, and sustainability in the Indian automotive landscape.
In conclusion, Hero MotoCorp’s latest investment in Ather Energy marks a significant step towards a sustainable and electrified future for the Indian automotive industry. The partnership reflects a shared vision for cleaner and greener mobility solutions, reinforcing the commitment of both companies to contribute to a more sustainable and eco-friendly transportation ecosystem.
