Hero MotoCorp announces its investment of Rs 420 crore in Ather Energy

Hero MotoCorp has announced its new investment of up to Rs 420 crore in Ather Energy. According to a press release, the two-wheeler major's board has approved the investment in one or more tranches.

Prior to the proposed investment, Hero MotoCorp's shareholding in Ather Energy was 34.8% (on a fully diluted basis). The press release says that post the investment, Hero's shareholding in Ather Energy will increase and the exact shareholding will be determined upon completion of the capital raise round by Ather.

It is also subject to execution of definitive documents and completion of certain conditions customary to a transaction of this nature.

The investment comes at a time when Ather Energy has announced a price hike for its electric scooters. Earlier in the day, Ather announced an increase of about Rs 5,500 for its electric scooters, citing rising input costs as the reason.

Swadesh Srivastava, Head of the Emerging Mobility Business Unit at HeroMoto Corp said, "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."

Besides electric scooters, Hero MotoCorp is exploring other collaborations with Ather Energy in various spheres, such as charging infrastructure, technology and sourcing.

Hero MotoCorp is also gearing up to unveil its first electric vehicle (EV) in the month of March this year. It 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. The EV will be manufactured at the company's manufacturing facility at Chittoor, Andhra Pradesh.