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
car&bike Team | Jul 1, 2026BYD eMax 7 Comfort Launched At Rs 27.90 LakhNew mid variant slots in between the Premium and Superior trim and comes with the 71.8 kWh battery.1 min read
car&bike Team | Jul 1, 2026BYD Cars Prices Hiked By Up To Rs 1 LakhBYD India has revised prices across select variants in its electric passenger vehicle line-up, with increases ranging from Rs 50,000 to Rs 1 lakh.1 min read
Jaiveer Mehra | Jul 1, 2026Fifth-Gen BMW X5 Debuts With ICE, Hybrid, EV & FCEV PowertrainsNew X5 adopts the ‘Neue Klasse’ design from the smaller X3 while offering a wide range of powertrain options.1 min read
Jafar Rizvi | Jul 1, 2026Lamborghini Urus SE Performante Revealed As Brand’s Most Powerful SUV YetPacking 801 bhp and a 0-100 kmph time of 3.3 seconds, it is the quickest and most powerful Urus to date.3 mins read
car&bike Team | Jul 1, 2026Ather 450X Overtones Series Launched; Gets Faster Charging & New ColoursThe 450X Overtones series features three new colours, a new 900W charger as well as the updated Atherstack 7 software platform, which unlocks new features.1 min read
car&bike Team | Jul 1, 2026VIDA Reveals New Brand Logo, Enters Asia Book of RecordsHero MotoCorp's EV arm, VIDA, has introduced a redesigned logo that reflects its expanding electric mobility ambitions.1 min read
Seshan Vijayraghvan | Jun 29, 2026Renault Kiger vs Toyota Urban Cruiser Taisor: Which Underdog Deserves Your Money?Both the Kiger and the Taisor promise strong performance, solid features, comfortable cabins and everyday usability, all without breaking the bank. But which of these underrated subcompact SUVs deserves your money? Let's find out.1 min read
Seshan Vijayraghvan | Jun 29, 2026Skoda Kodiaq RS Review: The Best Kodiaq Yet?The Skoda Kodiaq RS is finally here, and it's every bit as exciting as I expected. But was it worth the wait?7 mins read
Bilal Firfiray | Jun 28, 2026BMW X6 M60i Review: It’s Back And HOW!The BMW X6 M60i blends a 530bhp twin-turbo V8, with its unmistakable coupe-SUV styling. There’s plenty of character, but is it worth your money?6 mins read
Janak Sorap | Jun 25, 2026350cc Bajaj Dominar 400 Review: Same Character, Lower PriceA slightly lower displacement engine, a significantly lower price tag and nearly the same performance — the Bajaj Dominar 400 aims to be smarter rather than faster.6 mins read
Preetam Bora | Jun 25, 20262026 Bajaj Pulsar NS400Z First Ride Review: Smaller Engine, But Should You Buy It?The Bajaj Pulsar NS400Z won our Two-Wheeler Upgrade of the Year. Then new tax slabs happened. Smaller engine, same badge – but does it still deliver?6 mins read