Hero MotoCorp is doubling down on its electric two-wheeler bet. The company has increased its stake in electric scooter maker Ather Energy to around *32.8%, after purchasing 1.18 crore Ather shares for approximately ₹1,758 crore.
The shares were bought at ₹1,480 apiece, taking Hero MotoCorp’s holding up from 29.48% to 32.8%.
The latest investment underlines Hero MotoCorp’s growing confidence in Ather as India’s electric two-wheeler market continues to expand and competition gets tougher.
Another ₹1,000 Crore Investment on the Way
The development comes just a month after Hero MotoCorp announced an additional ₹1,000 crore investment in Ather Energy.
Ather, meanwhile, is strengthening its own balance sheet. The EV maker recently raised ₹1,300 crore through a Qualified Institutional Placement (QIP) and is planning to raise another ₹1,200 crore through a preferential issue.
Together, these fundraising moves give Ather additional firepower as it looks to expand its operations, strengthen its product portfolio and compete more aggressively in India’s fast-growing electric scooter market.
Ather’s Losses Shrink as Revenue Jumps
Ather’s latest financial numbers also offer some encouraging signs.
For Q1 FY27, the company reported a net loss of ₹51.1 crore, marking a sharp 71% decline in losses compared with the year-ago period.
At the same time, operating revenue jumped 89% year-on-year to ₹1,216.9 crore.
The combination of rapidly rising revenue and narrowing losses suggests that Ather is moving closer to improving its financial performance while continuing to invest in growth.
Investors React Positively
The market appeared to welcome Hero MotoCorp’s increased commitment.
Following the transaction, Ather shares closed 9.3% higher at ₹1,612, pushing the company’s market capitalisation to approximately ₹63,592.30 crore.
For Hero MotoCorp, the investment is more than just an increase in ownership. It strengthens its position alongside one of India’s prominent electric two-wheeler players at a time when the country’s EV industry is entering a more competitive phase.
The Bigger Picture
India’s electric two-wheeler market is seeing growing interest from both consumers and traditional automobile companies. For established manufacturers such as Hero MotoCorp, partnerships and strategic investments in EV-focused companies can provide a faster route into a market that is evolving rapidly.
For Ather, having a major established automotive player increase its stake brings not only capital but also a strong strategic partner.
With Hero MotoCorp now holding about 32.8% of Ather, the message is clear: the country’s EV race is getting serious, and Hero wants a bigger seat at the table.
