Hero MotoCorp announces Rs 550 crore investment in Ather Energy

Hero to invest more in Ather: Hero MotoCorp, India’s leading motorcycle manufacturer, has revealed its plans to invest an additional Rs 550 crore in Ather Energy, an electric vehicle (EV) manufacturer. This investment was approved during a board meeting held on September 4, 2023.

Prior to this investment, Hero MotoCorp held a 33.1 per cent stake in Ather Energy. The infusion of funds comes at a strategic juncture as Ather Energy is preparing for a potential initial public offering (IPO), possibly in 2024.

In October of the previous year, Ather Energy successfully raised $50 million in equity funding, led by its existing investor Caladium Investment Pte Ltd, with participation from Navam Capital-backed Herald Square Ventures.

Ather launches new Ather 450S 

A significant development from Ather Energy is the recent launch of its entry-level electric scooter model, the 450S, in India. Ather 450S is priced at Rs 1.29 lakh (ex-showroom Delhi), This scooter boasts a 2.9 kWh battery capacity, a range of 115 kilometres, and a top speed of 90 km/hour. With the introduction of the 450S in the 125cc category, Ather Energy aims to double its market share to approximately 30-40 per cent in the coming years.

The existing 450X model now offers customers the choice between two variants, one with a 115-kilometre range priced at Rs 1.37 lakh and another with a 145-kilometre range priced at Rs 1.44 lakh.

Expanding EV charging network with BPCL

In a strategic move to expand its EV charging network, Ather Energy recently joined forces with Bharat Petroleum Corporation Limited (BPCL). This collaboration with BPCL allows Ather Energy to leverage BPCL's extensive network of over 21,000 fuel stations across the country to facilitate the installation of Ather's public fast-charging grid.

Ather Energy has already established more than 1,400 charging stations in over 100 cities. In August of this year, the company reported sales of around 6,835 units of two-wheelers, marking a 2 per cent increase from July's figure of 6,671 units of two-wheelers. The additional investment from Hero MotoCorp is expected to further fuel Ather Energy's growth in the rapidly expanding Indian electronic vehicle market.