Hero MotoCorp has approved an investment of up to ₹17.58 billion (~$175.8 million) to acquire additional equity shares in electric two-wheeler (e-2Ws) manufacturer Ather Energy, increasing its fully diluted shareholding by up to 2.92%.

Hero will purchase the additional shares for cash from an existing Ather shareholder. The company held a 29.88% stake in Ather on a fully diluted basis as of August 25, 2026. Following the transaction, its shareholding will increase to up to 32.8% on a fully diluted basis.

The acquisition is expected to be completed by September 3, 2026.

Ather Energy designs, manufactures, sells, and services e-2Ws. The company also develops charging infrastructure and operates in the storage, distribution, and management of electric power, including battery-based energy. The company reported a turnover of ₹36.72 billion (~$367.18 million) for the financial year ended March 31, 2026

Ather Energy recently raised approximately ₹13 billion (~$134.74 million) through a qualified institutional placement of equity shares.

According to data released by the Ministry of Road Transport and Highways through its Vahan Dashboard, electric vehicle (EV) sales in India reached 837,453 units in the second quarter of 2026, a year-over-year increase of 52.3% over 549,900 units recorded in the corresponding quarter of 2025. During the quarter, Ather Energy sold 88,465 units of e-2Ws, while Hero MotoCorp sold 57,062 units.

The Delhi government notified the Electric Vehicles Policy, 2026 in July, introducing phased purchase incentives, scrapping benefits, exemptions from road tax and registration fees, and mandatory electrification timelines for key vehicle segments. The policy aims to accelerate EV adoption, expand charging and battery-swapping infrastructure, strengthen battery recycling and component recovery systems, reduce dependence on internal combustion engine vehicles, and improve air quality.

In April, the Ministry of Heavy Industries halved the incentives for e-2Ws under Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement to ₹2,500 (~$26.17)/kWh, while extending eligibility to July 31, 2026. The subsidy was earlier capped at ₹5,000 (~$52.4) per vehicle.