Hero MotoCorp, a manufacturer of motorcycles and scooters, is investing ₹4.2 billion (~$56.44 million) in Ather Energy, an electric two-wheeler manufacturer.

The company’s board approved the investment in one or more tranches, aiming to increase its shareholding in Ather Energy. The exact shareholding percentage will be calculated upon the completion of capital raise by Ather. Before the proposed investment, Hero MotoCorp’s shareholding in Ather Energy was 34.8% (on a fully diluted basis).

This is the fifth investment by the company in Ather Energy, the first one dating back to 2016. The investments further enhance the collaboration of Hero MotoCorp with Ather Energy on electric-charging infrastructure and technology for its own electric scooter, provisioned to be launched in March 2022.

The soon-to-be-launched electric scooter is being developed at the company’s R&D set-up – the Center of Innovation and Technology (CIT) in Jaipur and the Tech Center Germany (TGG) near Munich. It will be produced at the company’s manufacturing facility at Chittoor in the southern Indian state of Andhra Pradesh.

Sharing his comments on the investment, Swadesh Srivastava, Head – Emerging Mobility Business Unit, Hero MotoCorp, said, “In keeping with our vision ‘Be the Future of Mobility,’ we are working on a variety of emerging mobility solutions. We were one of the early investors in Ather Energy and have continued to expand our association over the years. We are excited to see the growth of Ather Energy in recent years. Our aim is to expand the Hero MotoCorp brand promise and make EV ownership a convenient, hassle-free, and rewarding experience for customers across the world.”

Hero Motocorp, alongside its alliance with Ather, recently also tied up with a Taiwan-based battery swapping company Gogoro Inc to help build an entire EV ecosystem, from products to technology, from sales to service, operations, and innovation.

Last year, Hero Motocorp announced an investment of ₹840 million (~$11.25 million) in Ather Energy, increasing its share to 34.58%.

In early 2021, Ather Energy had started its two-wheeler production at its facility in Hosur, Tamil Nadu, and started deliveries across major cities in the country. The facility is said to have a manufacturing capacity of 110,000 scooters annually.