Hero MotoCorp is set to strengthen its presence in India's rapidly growing electric two-wheeler market by acquiring an additional stake in Ather Energy for up to Rs 1,758 crore. The investment will increase Hero MotoCorp's shareholding in Ather from 29.88% to approximately 32.8% on a fully diluted basis.
According to the company's regulatory filing, Hero MotoCorp will purchase additional equity shares from an existing shareholder of Ather Energy through a cash transaction. The deal is expected to be completed by September 3, 2026, subject to the terms of the transaction. Hero MotoCorp already considers Ather Energy an associate company and has been steadily increasing its exposure to the electric mobility business.
The latest investment highlights Hero MotoCorp's continued focus on the electric vehicle sector. Ather Energy designs, manufactures, sells and services electric two-wheelers and also operates charging infrastructure. Its business additionally covers battery-related energy storage, distribution and management, giving Hero MotoCorp exposure to several areas of the electric mobility ecosystem.
Ather has also reported significant growth in its business in recent years. The company's turnover increased from Rs 1,753.8 crore in FY2024 to Rs 2,255 crore in FY2025. For the financial year ended March 31, 2026, Ather reported a turnover of Rs 3,671.76 crore, reflecting strong growth in its operations.
Hero MotoCorp has clarified that the proposed share purchase does not fall under related-party transactions. The company also stated that no promoter, promoter group member or group company of Hero MotoCorp has an interest in the entity from which the additional shares will be acquired.
The move comes at a time when competition in India's electric two-wheeler market is intensifying, with established automobile manufacturers and EV-focused companies expanding their product portfolios and charging networks. Hero MotoCorp's increased stake in Ather indicates a stronger strategic commitment to electric mobility and could give it greater participation in Ather's future growth.
With the proposed transaction, Hero MotoCorp will raise its holding to nearly one-third of Ather Energy. The investment underlines the company's strategy of building a stronger position in India's evolving EV market while continuing to expand its partnership with Ather Energy.
