Hero MotoCorp to invest ₹1,758 crore more in Ather, raising stake to 32.8%

Hero MotoCorp plans an additional investment of up to ₹1,758 crore in Ather Energy, taking its holding to 32.8% and making it Ather’s largest shareholder. The move follows a ₹1,000 crore preferential investment approved in July.

— Source publishedFri, 28 Aug, 2026, 08:41 IST·First seen Fri, 28 Aug, 2026, 09:09 IST·Source Financial Express · BrandWagon

What happened

Hero MotoCorp will invest up to Rs 1,758 crore more in electric two-wheeler maker Ather Energy, increasing its stake to 32.8% and becoming Ather’s largest

Key facts

  • Rs 1,758 crore additional investment
  • Hero MotoCorp stake to rise to 32.8%
  • Current stake: 29.88% as of August 25
  • Rs 1,000 crore investment approved in July
  • Prior stake: 29.48%
  • Transaction expected to complete by September 3
  • Ather FY26 turnover: Rs 3,671.76 crore
  • Ather FY25 turnover: Rs 2,255 crore
  • Ather FY24 turnover: Rs 1,753.8 crore

Why this matters

By becoming Ather’s largest shareholder at 32.8%, Hero is securing strategic influence without a full acquisition while creating room for deeper commercial integration.

What to watch

  • Completion terms, timing and regulatory approvals for the ₹1,758 crore investment.
  • Ather’s quarterly retail sales growth, market-share movement and dealer/service footprint expansion.
  • Evidence of Hero dealership access, common suppliers, manufacturing support or joint financing programs.
  • Ather’s gross-margin trajectory, cash burn and timeline toward operating profitability.
  • New Ather model launches, battery/charging upgrades and pricing actions versus Ola Electric, TVS and Bajaj.
  • Hero MotoCorp’s stated governance rights and level of operational influence after reaching 32.8% ownership.
  • Ather is likely to increase experience-centre and service-network additions in tier-1 and tier-2 cities.
  • Hero and Ather may expand shared sourcing, battery, software, charging and after-sales initiatives while retaining distinct consumer brands.
  • Ather could use the strengthened balance sheet to fund product refreshes across price points and reduce reliance on premium-only positioning.
  • Hero may position its portfolio around differentiated EV brands: Ather for technology-led premium retail and Hero’s own offerings for broader mass-market distribution.
  • Competitors may increase dealer incentives, financing offers and EV scooter promotions in key metropolitan markets.