Hero MotoCorp To Invest Up To Rs. 205 Crore In Ather Energy
car&bike Team
1 min read
Oct 27, 2016, 04:07 PM
Key Highlights
- Initial investment will be 180 crore; The rest as and when required
- The Ather S340 scooter was first unveiled in February this year
- The EV space is a clear focus for Hero MotoCorp
In order to promote sustainable mobility, one needs to look at alternative sources of energy and fuel. The day is not far when, fossil fuels would have run their course and leave the vehicles of the world to run on electricity. This is where Ather Energy comes in. A start-up, which was backed by Flipkart, who invested a princely sum of USD 1 million in this company, which aims at manufacturing smart, electric scooters. Ather Energy is the brainchild of IIT Madras graduates Tarun Mehta and Swapnil Jain, who started working together in 2013, with singular focus on the adoption of electric vehicles in the country.
The Hero MotoCorp Board has approved an investment of Rs. 205 Crore in a couple of tranches with a view to hold approximately 26 per cent-30 per cent of shares in Ather Energy Pvt Ltd. Hero terms this as strategic investment. The investment, of course, will be subject to the carrying out of agreements and completion of pre-set conditions from Ather Energy. The investment will be used to focus on product design and strategy.
Tarun Mehta, CEO and co-founder, Ather Energy Pvt. Ltd. said, "The funding is a strong validation of our product roadmap and technological capability, endorsed by one of the biggest global automotive players. We believe smart, connected electric vehicles are the future and India will be an important global player in it. Our vision is to fast forward to that future and this investment will help us leapfrog several years of automotive experience." He also added that there will be no change in the product portfolio, the way of working and the distribution strategy with Hero on board.
In its letter to the listing department of the National Stock Exchange, Hero MotoCorp has clearly mentioned that the adoption of environment friendly fuel is a priority for the company along with sustainable manufacturing practices as well. Hero MotoCorp outlined that it wants to enhance its participation in the EV space by pursuing its internal EV program and also partnering with Ather Enegy.
Last year in May, Ather Energy received a funding of USD 12 million from Tiger Global, which was used in research and development of the Ather S340, the first electric scooter to have been completely designed and developed in India. The prototypes are already ready and get a lithium-ion battery pack, lightweight aluminium frame, digital dashboard and have a top speed of 75 km/h. The S340 is now in its final stages of testing. Ather Energy will commission a plant having an initial capacity of 10,000 units and scale up as demand grows to 30,000 units.
The Hero MotoCorp Board has approved an investment of Rs. 205 Crore in a couple of tranches with a view to hold approximately 26 per cent-30 per cent of shares in Ather Energy Pvt Ltd. Hero terms this as strategic investment. The investment, of course, will be subject to the carrying out of agreements and completion of pre-set conditions from Ather Energy. The investment will be used to focus on product design and strategy.
Tarun Mehta, CEO and co-founder, Ather Energy Pvt. Ltd. said, "The funding is a strong validation of our product roadmap and technological capability, endorsed by one of the biggest global automotive players. We believe smart, connected electric vehicles are the future and India will be an important global player in it. Our vision is to fast forward to that future and this investment will help us leapfrog several years of automotive experience." He also added that there will be no change in the product portfolio, the way of working and the distribution strategy with Hero on board.
In its letter to the listing department of the National Stock Exchange, Hero MotoCorp has clearly mentioned that the adoption of environment friendly fuel is a priority for the company along with sustainable manufacturing practices as well. Hero MotoCorp outlined that it wants to enhance its participation in the EV space by pursuing its internal EV program and also partnering with Ather Enegy.
Last year in May, Ather Energy received a funding of USD 12 million from Tiger Global, which was used in research and development of the Ather S340, the first electric scooter to have been completely designed and developed in India. The prototypes are already ready and get a lithium-ion battery pack, lightweight aluminium frame, digital dashboard and have a top speed of 75 km/h. The S340 is now in its final stages of testing. Ather Energy will commission a plant having an initial capacity of 10,000 units and scale up as demand grows to 30,000 units.
Related News
Popular Hero Models
Latest Cars
Upcoming Cars
Latest News
Amaan Ahmed | May 30, 2026Keeway's First Electric Scooter For India To Feature 14-Inch Wheels And ABS; Launch In JuneSold under the 'EZI' sub-brand in its home market, Keeway's Hypevolt will slot into India's nascent but fast-growing premium electric scooter market, with an expected price tag of over Rs 3 lakh.1 min read
Jaiveer Mehra | May 29, 20262026 Tata Tiago Variant-Wise Features, Prices DetailedThe new Tiago is offered in six trim levels, with petrol & CNG engine options and with either a manual or AMT.2 mins read
Jaiveer Mehra | May 29, 20262026 Tesla Model Y Premium RWD Launched At Rs 50.89 LakhStandard Model Y is now offered in a single variant and only in standard range spec.2 mins read
car&bike Team | May 29, 2026All-Electric Toyota Urban Cruiser EBella E3 Variant Launched At Rs. 23.60 LakhAs of now, Toyota has only announced the price of the top-spec EBella. Prices for the lower versions – the E1 and E2, will be announced later.3 mins read
car&bike Team | May 28, 2026Royal Enfield Bullet 650 Vs Classic 650: Differences ExplainedThe Royal Enfield Bullet 650 and the Royal Enfield Classic 650 have a lot in common, including the basic platform and chassis. Yet, there are differences to give each its own identity.4 mins read
Jaiveer Mehra | May 28, 2026New Tata Tiago, Tiago EV: In PicturesThe Tiago siblings now get greater design differentiation and pack in more modern tech.1 min read
Bilal Firfiray | May 29, 2026Skoda Octavia vRS Review: The Sensible Car Every Car Guy (Eventually) WantsThe Skoda Octavia vRS blends practicality with performance. It’s a real enthusiast appeal in a sensible sedan package.1 min read
Bilal Firfiray | May 25, 2026Renault Duster 1.3 Turbo DCT Road Test Review: The Solid Middle GroundMarking its return, the Renault Duster offers a strong ride quality, a refined 1.3 turbo-petrol engine, balanced handling and lot more impressive cabin. Should you buy it though?5 mins read
Preetam Bora | May 23, 20262026 Harley-Davidson X440T Road Test Review: Did Harley Just Fix Everything?We spent a few days with the Harley-Davidson X440T to understand if Harley-Davidson India has managed to fix all the shortcomings of the standard X440!1 min read
Janak Sorap | May 20, 2026Norton Manx R First Ride Review: Brit Superbike Killer?The Norton Manx R is not just another 200 bhp superbike chasing lap times — it is a motorcycle that tries to bring character, exclusivity and real-world usability back into the superbike experience.8 mins read
car&bike Team | May 20, 2026Axor Brutale Surges Dual Spoiler Helmet Review: Best Of Both WorldsThe Axor Brutale Surges Dual Spoiler Helmet promises a strong mix of everyday comfort and track-focused safety. But does it? Let's find out.5 mins read