Hero MotoCorp has increased its stake in electric mobility firm Ather Energy by 2.2% by purchasing shares worth ₹1.24 billion (~$14.85 million).

The indicative period for the completion of the acquisition is July 31, 2024. The transaction will be made on an arm’s length basis.

Ather Energy, an existing associate company of Hero MotoCorp, designs, manufactures, sells, and services electric two-wheelers. The company also has charging infrastructure and stores, distributes, and manages electric power and other ancillary services.

In 2023, Hero MotoCorp approved an investment of up to ₹5.5 billion (~$66.3 million) in the rights issue of Ather Energy.

Prior to this investment, Hero MotoCorp held a 33.1% share in Ather, based on a fully diluted basis.

The company said the funding will reinforce Hero MotoCorp’s commitment to the growth and development of Ather and the electric mobility sector. The investment involved subscribing to the rights issue of the associate company, making it a related party transaction.

The same year, Hero MotoCorp also announced an investment of ₹4.2 billion (~$56.44 million) in Ather to increase its shareholding. This was the company’s fifth investment in Ather, the first one dating back to 2016.

In 2022, Ather Energy raised $128 million from Hero MotoCorp and NIIFL in a Series E funding round to accelerate the expansion of its production units with a focus on research and development.

Electric vehicle sales in India reached a record 486,669 units in the first quarter of 2024, a jump of over 40% year-over-year against the 347,676 units sold in the same period of 2023. Electric two-wheelers accounted for nearly 62% (301,010) of the total EVs sold during the quarter. Ather’s electric two-wheelers accounted for the fourth-highest sales in the category.

In March this year, the Ministry of Heavy Industries launched the Electric Mobility Promotion Program 2024 with a funding of ₹5 billion (~$60.34 million). The program targets electric two-wheelers and three-wheelers, including e-rickshaws, and e-carts.