Hero MotoCorp has revealed its interest in investing Rs 550 crore in electric scooter manufacturer Ather Energy.
Hero MotoCorp, an existing shareholder of Ather Energy, currently has a 33.1% equity stake in the EV maker and will invest up to Rs 550 crore.
With this fresh investment in the EV OEM’s Series E2 Compulsory Convertible Preference Shares, Hero MotoCorp’s stake in Ather Energy will rise above 33.1%, albeit the specific level of increment will be known only after closure of the rights issue.
The fresh investment clearly means the world’s largest two-wheeler OEM has reposed its faith in the dynamic EV start-up, which is currently the third-ranked electric-two-wheeler OEM in India after Ola Electric and TVS Motor Co.
Incorporated in India in October 2021, Ather Energy is engaged in the business of designing, manufacturing, producing, selling, servicing, software development, and software management, in relation to EVs and charging infrastructure, and also storage, distribution, and management systems, or all forms of electric power (including energy in the form of batteries) and other ancillary services.
In CY2016, 16,301 electric two-wheelers were sold in India. Total sales in CY2022 were 615,365 units – a 3,675% increase over five years. And Ather Energy has benefitted from the countrywide demand for EVs.
This is amply reflected in the pace of growth at Ather Energy – in FY2023, the company sold a total of 93,212 units, which is a 302% year-on-year increase (FY2022: 23,167 units).