As of my last knowledge update in September 2021, there was no indication of Hero MotoCorp enhancing its ownership in Ather Energy through a new investment of $66.5 million. However, it’s important to remember that my information needs to be updated, and I need access to real-time news updates.
For the most precise and current information, consult recent news reports, official statements from Hero MotoCorp and Ather Energy, or reputable financial news outlets. These sources will offer the latest updates concerning potential investment and collaboration developments between the two companies.
The leading two-wheeler manufacturer in the world, Hero MotoCorp, announced on Monday that it would invest up to $66.5 million in Ather Energy, an exciting new electric vehicle startup in India whose rapid expansion had to be put on hold due to a local legislative change.
Hero MotoCorp stated (PDF) in a stock exchange filing that its board of directors had approved a new investment of up to $66.5 million in the rights issue of Ather Energy. Hero MotoCorp already holds a 33.1% share in the Bengaluru-based company.
The Ministry of Heavy Industries recently cut the subsidy it offers for two-wheelers, which dealt a blow to Ather Energy, which, like many other EVs, has benefited greatly from state and federal subsidies in recent years. Ather Energy was on track to reach $1 billion in revenue by December this year.
Ather was in discussions to close a round of over $250 million at a valuation of over $1 billion before the policy change. Ather’s investor, Binny Bansal, informed a podcast audience that Ather had become a unicorn.
Hero MotoCorp said that while the valuation of Ather Energy in the rights issue has not yet been decided, it will expand its share in the firm. According to Hero, Ather Energy had a $218.3 million revenue for the fiscal year that ended in March of this year.
In India, adopting electric two-wheelers is leading the charge in the electrification drive, mainly because many consumers still consider electric cars too expensive. Transitioning to cleaner alternatives for most of its vehicle fleet, which consists of over 70% two-wheelers, could help India tackle its air pollution issues. According to forecasts from consulting firm Arthur D. Little, electric car sales in India are expected to constitute approximately 30% of the market by 2030.
Hero MotoCorp’s latest investment in Ather comes as the largest motorbike and scooter manufacturer in the world is stepping up its attempts to develop electric vehicles. Hero MotoCorp unveiled its first electric vehicle last year.
[Source of Information: Techcrunch.com]
[Source of Image : Techcrunch.com]
