Hero MotoCorp Deepens EV Push with $116 Million Investment in Ather Energy

Through a preferential allocation, Hero MotoCorp has authorised an investment of $116 million (about INR 1,000 crore) in Ather Energy, a manufacturer of electric two-wheelers. The long-standing cooperation between Hero MotoCorp and the Bengaluru-based company will be further strengthened by this new investment. Subscription of equity shares and other qualifying securities, such as compulsorily convertible preference shares and warrants, will be used to make the investment.

All this is contingent upon regulatory clearances and shareholder and board approvals from Ather. As of June 30, 2026, Hero MotoCorp's fully diluted ownership in Ather Energy was 29.48%. The pricing of Ather's subsequent securities and the preferential issue will determine the company's final shareholding following the transaction.

Ather’s Market Performance

Ather was an early player in the electric two-wheeler business in India, but it was up against much bigger and more well-funded competitors like Bajaj Auto and TVS Motor. Ather is an existing associate company of Hero MotoCorp Limited that designs, manufactures, sells, and services electric two-wheelers, according to a stock exchange filing by Hero MotoCorp.

Electric power, including energy from batteries, is stored, distributed, and managed by Ather, which also operates its own charging infrastructure and provides supplementary services. Ather had a revenue of INR 3,671.76 crore for the fiscal year ending March 31, 2026. In the past month, Ather Energy stock has increased 25%, and during the past five trading sessions, it has increased by more than 7%. On July 15, 2026, during the trading session, the electric vehicle manufacturer's market capitalisation (m-cap) stood at INR 49,240 crore.

Ather Entering Affordable Market

Ather Energy, an electric vehicle manufacturer, entered the low-cost market with the announcement of its new scooter based on the recently built EL platform on July 14. The forthcoming new "mass-market" scooter from Ather would reportedly cost between INR 1 lakh and INR 1.25 lakh, according to NSE filings. Launching this product will help the company achieve its goal of increasing its share of the two-wheeler electric vehicle industry in India.

At its Ather Community Day in Bengaluru, India, on August 29, 2026, the business is planning to unveil the new scooter. The business informed the stock markets that Ather will bring several advances to the ownership experience, including those in the areas of technology, charging, and the ecosystem, all with the goal of making it more connected and frictionless. According to official data, the Ather Rizta, the company's most affordable scooter, currently retails for INR 1.31 lakh (ex-showroom).

Reports indicate that Ather Energy has approximately 16% of the market share for electric two-wheelers. This puts Ather in third place among its rivals, with a market share of about 9%; its main rival in the electric scooter industry, Ola Electric, is in fifth place.