In a major consolidation of India’s electric two-wheeler market, auto giant Hero MotoCorp has approved a massive preferential investment of ₹960 crore in Bengaluru-based electric vehicle startup Ather Energy. The strategic cash infusion is part of a broader ₹1,200 crore fundraise approved by Ather’s board, which also includes a ₹200 crore participation from the state-backed India-Japan Fund alongside contributions from the company’s founders. Upon receiving final regulatory and shareholder clearances, Hero MotoCorp—already the startup’s largest institutional backer—will see its total equity stake in the EV firm climb to 30.68% from its current 29.48% holding.
This substantial capital infusion comes at a crucial juncture for Ather Energy as the company prepares a massive product offensive to challenge deep-pocketed legacy competitors like TVS and Bajaj. The company intends to channel the fresh proceeds directly into research and development, marketing, and the expansion of its nationwide public charging infrastructure. Most notably, the funds will support the aggressive rollout of its new “EL platform,” an affordable, mass-market electric scooter expected to debut at its upcoming Community Day on August 29. Priced aggressively in the ₹1 lakh to ₹1.25 lakh segment, the new model marks Ather’s first all-new platform since its flagship 450 series and is designed to dramatically scale up production volumes. Additionally, the investment will back the ongoing “Factory 3.0” project in Maharashtra, which aims to propel Ather’s total production capacity to a staggering 1.42 million units annually to meet surging sustainable mobility demands across India.
