New Delhi, India — Hero MotoCorp has approved an additional investment of up to ₹1,000 crore in electric two-wheeler manufacturer Ather Energy, strengthening its strategic exposure to India’s expanding electric-mobility market.
Hero MotoCorp’s board approved the proposed investment on July 14, 2026. The capital will be deployed through a preferential allotment of equity shares or other eligible securities, which may include compulsorily convertible preference shares and warrants issued by Ather Energy.
The transaction remains subject to applicable approvals, including clearance from Ather Energy’s board and shareholders. Hero MotoCorp said it expects to complete the investment within 15 days of Ather receiving the final required approval. The consideration will be paid entirely in cash.
As of June 30, 2026, Hero MotoCorp held a 29.48% stake in Ather Energy on a fully diluted basis, making it the electric-vehicle company’s largest shareholder. Hero’s final shareholding after the transaction will depend on the pricing and structure of the preferential issue, as well as any additional securities approved by Ather.
Hero MotoCorp classified Ather Energy as an associate and related-party company. However, the two-wheeler manufacturer said the proposed investment would be conducted on an arm’s-length basis.
Ather Energy designs and manufactures electric scooters and also operates charging infrastructure and battery-management services. The Bengaluru-headquartered company reported turnover of ₹3,671.76 crore for the financial year ended March 31, 2026.
The proposed capital infusion reflects Hero MotoCorp’s continued investment in electric mobility alongside its own VIDA electric-vehicle business. Hero has been an investor in Ather since 2016 and has increased its holding through multiple transactions over the years.
The development comes as competition intensifies in India’s electric two-wheeler market, with Ather competing against established manufacturers including TVS Motor and Bajaj Auto, as well as other electric-vehicle companies.
The ₹1,000 crore amount represents the maximum investment approved by Hero MotoCorp. It should not be described as a completed funding round until the required approvals are obtained and the securities are formally allotted.
