Indian two-wheeler giant Hero MotoCorp has announced its plans to acquire an additional stake in Ather Energy, a key player in the premium electric vehicle (EV) segment and a direct competitor to Ola Electric. This strategic move involves a substantial investment of Rs 140 crore, reinforcing Hero MotoCorp’s commitment to the rapidly evolving EV market.
Growing Partnership: Hero MotoCorp’s Continued Support
Hero MotoCorp has been a longstanding supporter of Ather Energy, having previously invested in the company. This latest acquisition will raise Hero MotoCorp’s stake in Ather from the existing 36.7% to a substantial 39.7%. The investment is structured as an acquisition from existing shareholders, although specific details about the sellers remain undisclosed.
This move follows Hero MotoCorp’s earlier investment in September, where Ather Energy successfully raised Rs 900 crore through a rights issue, with contributions from Hero MotoCorp and Singapore-based GIC. The success of the rights issue reflects the strong support and confidence exhibited by shareholders, highlighting the promising trajectory of Ather Energy.
Ather Energy’s Remarkable Growth and Business Ventures
Ather Energy has positioned itself as a prominent player in the EV sector, specializing in the design, manufacturing, and servicing of electric two-wheelers. The company’s commitment extends beyond vehicle production, encompassing the establishment and management of its charging infrastructure.
For the fiscal year ending March 2023, Ather Energy reported a noteworthy turnover of Rs 1806.1 crore, underscoring its financial strength and market presence. In a bid to expand its global footprint, Ather Energy ventured into the international market with its entry into Nepal in October 2023. Teaming up with Vaidya Energy, the company introduced its flagship electric scooter, the 450X, and set the stage for further retail expansion with the unveiling of an Experience Center in Kathmandu.
Hero MotoCorp and Ather Energy’s Collaborative Initiatives
The partnership between Hero MotoCorp and Ather Energy extends beyond mere financial investment. Both companies have collaborated on the creation of an interoperable fast-charging network across India, a significant step in addressing the charging infrastructure needs for EVs. This network, slated to span 100 cities and incorporate over 1,900 charging points, demonstrates the shared commitment to advancing EV adoption in the country.
As Ather Energy expands its footprint, not only nationally but also internationally, the collaboration with Hero MotoCorp stands as a testament to the potential of meaningful partnerships within the EV ecosystem. While Ola Electric is making headlines with its impending IPO, recent reports suggest that Ather Energy is also gearing up for its public offering, potentially by Diwali 2024 or early 2025.
Looking Ahead: Hero MotoCorp’s Ongoing Commitment to Ather Energy
The acquisition of an additional stake in Ather Energy positions Hero MotoCorp strategically in the dynamic landscape of the EV market. As both companies gear up for potential IPOs, the collaboration is poised to play a pivotal role in shaping the future of electric mobility in India. Hero MotoCorp’s continued investment underscores its confidence in Ather Energy’s growth trajectory and its vision for a sustainable and electric future.
Conclusion
In conclusion, Hero MotoCorp’s reinforced investment in Ather Energy signifies a robust commitment to the burgeoning electric vehicle (EV) domain. With an additional stake acquisition of Rs 140 crore, Hero MotoCorp solidifies its position in the dynamic EV market, amplifying its support for Ather Energy’s innovative endeavors. The collaborative initiatives between the two giants, from funding rounds to the creation of a widespread fast-charging network, underscore a shared vision for advancing EV adoption in India. As both companies set their sights on potential IPOs, this strategic partnership is poised to shape the future of sustainable mobility, symbolizing a significant milestone in the evolution of the Indian automotive landscape.
