Hero MotoCorp has approved an additional investment of up to ₹10 billion (~$104 million) in Ather Energy through a proposed subscription to securities issued on a preferential allotment basis.

The investment may comprise equity shares, other eligible securities representing equity shares, or securities convertible into or exchangeable for equity shares, including compulsorily convertible preference shares and warrants.

The proposed subscription remains subject to necessary approvals, including approval from Ather Energy’s board of directors and shareholders.

As of June 30, 2026, Hero MotoCorp held a 29.48% stake in Ather Energy on a fully diluted basis. Hero MotoCorp said its shareholding after the transaction will depend on the pricing of the preferential issue and any subsequent securities issuance approved by Ather Energy’s board.

Hero MotoCorp expects to complete the transaction within 15 days after Ather Energy receives the final approval required for the preferential allotment.

In 2024, Hero MotoCorp increased its stake in Ather Energy by 2.2% through the purchase of shares worth ₹1.24 billion (~$14.85 million).

Ather Energy, an associate company of Hero MotoCorp, designs, manufactures, sells, and services electric two-wheelers. It also operates charging infrastructure and provides electric power storage, distribution, and management services, including battery-based energy services. Ather Energy reported a turnover of ₹36.72 billion (~$381.08 million) for the financial year 2026.

In September 2024, Ather Energy proposed raising ₹31 billion (~$369.4 million) through an initial public offering.

Hero MotoCorp has continued to invest in electric vehicle companies.

In February of this year, the company approved an additional investment of up to ₹2.75 billion (~$30.45 million) in Euler Motors. The investment would be made in one or more tranches through a primary infusion, a secondary purchase, or both.

Electric vehicle (EV) sales in India reached 696,769 units in the first quarter of 2026, an increase of more than 35.5% from 514,198 units in the same period a year earlier. Electric two-wheelers accounted for nearly 61% of total EV sales, with 427,773 units sold during the quarter.

In April of this year, the Ministry of Heavy Industries amended provisions of the PM Electric Drive Revolution in Innovative Vehicle Enhancement program and reduced incentives for electric two-wheelers and three-wheelers.