Hero MotoCorp, an early investor in Ather Energy and a key player in the Bengaluru-based smart electric scooter manufacturer’s growth since 2016, plans to increase its stake by 2.2%, anticipating a significant rise in demand for Ather products.
Hero MotoCorp, India’s and the world’s largest two-wheeler manufacturer, remains optimistic about the growth of the electric vehicle sector. The company, an early investor in Ather Energy, is set to increase its stake by up to 2.2% for Rs 124 crore by purchasing additional shares from an existing shareholder of Ather Energy.
In December 2023, Hero MotoCorp invested an additional Rs 140 crore in Ather Energy, increasing its stake by three percent to 39.7%. Hero MotoCorp was the last of the three legacy two-wheeler OEMs to enter the EV market with its Vida electric scooter in October 2022, following Bajaj Auto and TVS Motor Co, which launched their Chetak EV and iQube, respectively, in January 2020.
Ather Energy, incorporated in India on October 21, 2013, is engaged in designing, manufacturing, producing, selling, and servicing electric vehicles and charging infrastructure, as well as developing and managing related software and energy storage, distribution, and management systems. Ather has grown rapidly alongside the Indian electric two-wheeler market, which saw sales reach over 944,000 units in FY2024, a 30% YoY growth. Ather sold 108,870 units in FY2024, achieving a 41.50% growth (FY2023: 76,939 units) and a market share of 11.53%, placing it third after Ola Electric and TVS Motor Co. In the first two months of FY2025, Ather retailed 46,001 units, representing 42% of FY2024’s retail sales and giving it a market share of 13% year-to-date.
On April 6, Ather launched the new Rizta, priced between Rs 109,999 (Rizta S) and Rs 149,999 (Rizta Z). The S variant features a 2.9 kWh battery with a 123km range, while the Z variant has a 3.7 kWh battery with a 160km range. Highlights include the largest two-wheeler seat in India and ample storage space. Ather recorded a turnover of Rs 1,753.8 crore in FY2024, a slight decrease from FY2023’s Rs 1,780.9 crore. FY2023’s turnover marked a 336% YoY increase (FY2022: Rs 408.5 crore). Ather Energy is well-equipped to meet future demand with its manufacturing capacity. In FY2024, the company produced 107,186 EVs, a 14% YoY increase, from its plant in Hosur, Tamil Nadu. In April 2024, it produced 10,124 units, up 41% from April 2023’s 7,185 units.
On November 23, 2022, Ather inaugurated its second manufacturing plant in Hosur, Tamil Nadu, doubling its capacity to 420,000 units per annum. The new plant employs 1,600 personnel, is twice the size of the first plant, and features two vehicle and five battery lines, with increased automation reducing assembly times by 20%. Ather Energy, which retails the Rizta family scooter (6 variants), 450S (two variants), 450X (two variants), and 450 Apex, is also diversifying into electric motorcycles and is developing a more powerful product than the 450 e-scooters.
Hero MotoCorp has also approved an equity investment of up to US$60 million in US-based Zero Motorcycles, a leading global player in electric motorcycles and powertrains.
