Hero MotoCorp, continues to solidify its commitment to the electric vehicle (EV) sector by increasing its stake in Ather Energy. The company announced plans to raise its shareholding by up to 2.2% for Rs 124 crore, reflecting its bullish outlook on the burgeoning EV market.
This latest investment will be made through the purchase of additional shares from an existing shareholder of Ather Energy. This move follows a substantial Rs 140 crore investment made in December 2023, which increased Hero MotoCorp’s stake in the Bengaluru-based electric scooter manufacturer by 3%, bringing its total share to 39.7%.
Hero MotoCorp’s entry into the EV market came with the launch of the Vida electric scooter in October 2022. This was over two-and-a-half years after its competitors, Bajaj Auto and TVS Motor Co, introduced their respective electric scooters, the Chetak EV and the iQube, in January 2020.
Ather Energy, founded on October 21, 2013, is a prominent player in India’s EV market. The company designs, manufactures, and sells electric vehicles and charging infrastructure, in addition to offering software development and management services related to electric power and storage.
Ather Energy’s Rapid Growth
Ather Energy has seen impressive growth, paralleling the overall expansion of the Indian electric two-wheeler market. In FY2024, the industry recorded over 944,000 units sold, marking a 30% year-over-year increase. Ather Energy contributed significantly to this growth, selling 108,870 units, a 41.50% increase from the previous year, and capturing an 11.53% market share, ranking third behind Ola Electric and TVS Motor Co.
The company’s momentum has continued into FY2025, with 46,001 units sold in the first two months, already achieving 42% of FY2024’s total sales. This performance has boosted Ather’s market share to 13% year-to-date.
In April 2024, Ather launched the Rizta series, priced between Rs 109,999 and Rs 149,999. The Rizta S variant offers a 123km range with a 2.9 kWh battery, while the Rizta Z variant features a 160km range with a 3.7 kWh battery, boasting the largest two-wheeler seat in India and ample storage space.
Despite a slight dip in turnover, from Rs 1,780.9 crore in FY2023 to Rs 1,753.8 crore in FY2024, Ather Energy remains a strong contender in the market, having previously recorded a 336% increase in FY2023 over FY2022.
Future-Ready Capacity and Expansion Plans
Ather Energy is well-positioned to meet future demand with its robust manufacturing capabilities. In FY2024, the company produced 107,186 EVs, a 14% year-over-year increase, from its plant in Hosur, Tamil Nadu. In April 2024 alone, production reached 10,124 units, marking a 41% increase from April 2023.
The company’s capacity was significantly boosted in November 2022 with the inauguration of its second manufacturing plant in Hosur, doubling its annual capacity to 420,000 units. This state-of-the-art facility employs 1,600 personnel and features advanced automation that reduces assembly times by 20%.
Diversification and Global Ventures
Ather Energy is set to expand its product line to include electric motorcycles, a more powerful alternative to its existing 450 series scooters. This diversification aligns with Hero MotoCorp’s broader strategy, which includes a $60 million equity investment in US-based Zero Motorcycles, a leading global player in electric motorcycles and powertrains.
Hero MotoCorp’s increased investment in Ather Energy underscores its commitment to leading the charge in the EV market, leveraging Ather’s innovation and manufacturing prowess to capture a larger share of this rapidly growing sector.
