Hero MotoCorp Doubles Down on Ather as EV Plan Enters Next Phase
Hero MotoCorp sanctioned an investment of as much as Rs.1,000 crore in Ather Energy through a preferential issuance of equity shares or other qualifying securities, pending approvals from Ather’s board and its shareholders.
The funding arrives as Hero MotoCorp grows its electric vehicle operations with its VIDA brand while still maintaining Ather as an essential strategic investment.
In his communication to shareholders in the FY2025-26 annual report, Chief Executive Officer Harshavardhan Chitale stated that Hero’s “ongoing collaboration with Ather Energy” was a key aspect of the company’s wider electric mobility goals as it invested in connected technologies, low-emission powertrains, and digital capabilities.
The yearly report states that Hero's investment in Ather aims to establish “a top, all-encompassing EV portfolio spanning various categories,” alongside its own VIDA electric scooter venture and investments in charging infrastructure and Battery-as-a-Service.
For Hero, Ather signifies beyond just a stake investment.
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The company located in Bengaluru has created a high-end electric scooter brand while branching out into charging infrastructure, battery management, and energy services. Hero’s regulatory filing indicates that Ather’s revenue rose to Rs.3,671.76 crore in FY2025-26, up from Rs.2,255 crore in FY2024-25 and Rs.1,753.8 crore in FY2023-24, showcasing significant growth despite the company being in an investment stage.
Hero presently owns 29.48 percent of Ather on a fully diluted basis. The ultimate ownership stake resulting from the suggested investment will rely on the scale and cost of the preferential allotment and any later issuance of securities.
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The recent investment demonstrates Hero’s dual strategy for electric mobility. In addition to growing its fully owned VIDA electric scooter division, the company is also developing a wider EV ecosystem through investments in technology, charging infrastructure, and strategic alliances.
VIDA closed FY2025-26 with a 10.2 percent market share, increasing by six percentage points throughout the year. Hero stated that its plans for product expansion, along with strategic investments in Ather, enable it to gain market share in India’s electric two-wheeler sector.
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Instead of seeing VIDA and Ather as rival companies, Hero's approach implies that both will tackle distinct opportunities in the rapidly expanding electric mobility sector of the country. Hero is investing from a strong financial position. The company concluded FY2025-26 with cash reserves over Rs.14,000 crore, stayed debt-free, and achieved a capital return exceeding 30 per cent, allowing it to keep investing in new technologies while maintaining its core motorcycle and scooter operations.
The suggested investment indicates that Hero MotoCorp aims to enhance its footprint throughout various segments of the electric mobility value chain instead of depending on just one brand or platform.
Through the expansion of VIDA and a heightened investment in Ather, the company aims to tap into electric scooters, charging infrastructure, battery services, and associated technologies as the market enters its upcoming growth phase.