Hero MotoCorp remains bullish on the electric vehicle growth story so much so that it is set to increase its shareholding in Ather Energy by up to 2.20 percent (Rs 124 crore) in the Bengaluru-based startup. As per Hero MotoCorp, the investment is being made in the form of purchase of additional shares from an existing Ather Energy shareholder.
- Ather sold over 1 lakh e-scooters in FY2024
- Ather working on a product more powerful than 450s
In December 2023, Hero MotoCorp invested an additional Rs 140 crore in the Bengaluru-based smart electric scooter manufacturer, which increased its stake by three percent to 39.70 percent. Hero MotoCorp was the last of the three legacy two-wheeler manufacturers to enter the EV market with its Vida electric scooter in October 2022, much after Bajaj and TVS launched their Chetak and iQube models, respectively. Ather Energy, which was incorporated on October 21, 2013, is now among the top 5 EV sellers in the country on a monthly basis.
Also See: Electric scooter sales rise marginally in May 2024
Upping the EV quotient
Ather's rapid growth has been in tandem with the Indian electric two-wheeler market. In FY2024, Ather Energy sold 1,08,870 units to register a strong 41.50 percent growth (FY2023: 76,939 units) with a market share of 11.53 percent.
In the first two months of FY2025, the company has retailed 46,001 units, which is already 42 percent of FY2024’s retail sales giving it a market share of 13 percent currently.
Ather Energy is well placed in terms of manufacturing capacity to cater to future demand. In FY2024, the company rolled out 1,07,186 EVs from its plant in Hosur, up 14 percent YoY. In April 2024, it produced 10,124 units, a 41 percent increase (April 2023: 7,185 units).
The company is well placed to cater to growing demand for its e-scooters. In late 2022, the EV manufacturer inaugurated its second manufacturing plant at Hosur, increasing its capacity to 4.20 lakh units per annum. The new plant, which employs 1,600 personnel, is twice the size of the first plant and has two vehicle and five battery lines. Increased automation levels mean assembly times are down by 20 percent.
Meanwhile, Ather Energy, which retails the Rizta family scooter, 450S, 450X and the 450 Apex, is set to diversify into electric motorcycles in the future. It has begun work on a product, which will be more powerful than the 450 e-scooters.
Also See: Ather Rizta review: Still want that iQube or Activa?
Hero MotoCorp, as is known, had approved an equity investment up to USD 60 million (over Rs 50 crore) in US-based Zero Motorcycles, a leading global player in electric motorcycles and powertrains.