Ather Energy has announced that Hero MotoCorp and Singapore-based investment firm GIC will invest a total of Rs 900 crores into the EV OEM. Hero currently has a 33.1 percent equity stake in the EV maker, and will now invest up to Rs 550 crore more.
- Ather to use investment for new products and expansion of charging infrastructure
- Hero bullish on EV market, hence an increased investment
- Ather has sold 73,036 units between January and August 2023
- Ather plans to add over 100 fast chargers at BPCL locations across India by 2023-end
With this fresh investment, Hero MotoCorp’s stake in Ather Energy will rise well above the current 33.1 percent. However, the specific level of increment will be known only after closure of the rights issue. The investment clearly signifies the world's largest two-wheeler OEM’s faith in the dynamic EV start-up, which is currently the third-ranked electric-two-wheeler maker in India, after Ola Electric and TVS Motor Co.
Ather, Hero benefit from massive EV demand
Ather Energy launched two smart electric scooters – the 340 and 450 – in the country in June 2018. The company has come a long way in the market since then. Just two months ago, the OEM launched its newest product – the 450S – that is powered by a 3kWh battery pack, is expected to have an IDC (Indian Driving Conditions) range of 115km, and a top speed of 90kph. Its starting price is Rs 1,29,999 (exclusive of state subsidy).
In CY2016, 16,301 electric two-wheelers were sold in India. Total sales in CY2022 were 6,15,365 units – a 3,675 percent increase over five years. And Ather Energy has benefitted from the countrywide demand for EVs. This is amply reflected in the pace of growth at Ather Energy – in FY2023, the company sold a total of 93,212 units, which is a 302 percent year-on-year increase (FY2022: 23,167 units). In the first five months of FY2024, total retails are 41,556 units, which means it has already clocked 44 percent of FY2023’s record sales with seven months to go for FY2024 to come to a close.
Ather’s strong market performance is reflected in the company’s turnover – Rs 1,806.1 crore in FY2023, up 336 percent on FY2022’s Rs 413.8 crore. The turnover in FY2021 was Rs 79.8 crore. Hero MotoCorp, which has recently entered the EV arena with its own Hero Vida, is bullish on the India EV growth story and its sustained investment in Ather Energy is proof of that.
Expansion of fast-charging network
The company is well placed in terms of manufacturing capacity to cater to future demand. On November 23, 2022, Ather Energy inaugurated its second manufacturing plant at Hosur in Tamil Nadu, increasing its capacity to 4,20,000 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.
Ather Energy is also doing its bit to strengthen and expand the EV charging ecosystem across India with its Ather Grid charging stations. With over 1,400 chargers located across 100 cities, Ather has India’s largest EV two-wheeler charging network. Recently, it has tied up with leading oil marketing company BPCL. Through this strategic collaboration, Ather Energy will gain access to BPCL's extensive network of over 21,000 fuel stations across India, facilitating the installation of Ather’s public fast-charging stations. In its initial phase, Ather Energy has installed four fast chargers in the Delhi-NCR. The company plans to scale up to over 100 fast chargers at BPCL locations across India by the end of the year.