Hero MotoCorp has made another investment in India's rapidly growing electric two-wheeler market by acquiring shares in Ather Energy at a price of ₹1,758 crore. 1.18 crore Ather Energy shares were purchased at ₹1,480 per share, for a total value of ₹1,758 crore. Exchange data reported by The Economic Times showed that the Government of Singapore was the seller.
Hero MotoCorp is making a further step in Ather Energy with this purchase. Hero was already the largest shareholder of Bengaluru-based electric two-wheeler manufacturer, and the new deal will take its fully diluted shareholding to nearly 32.8%. This is another step in Hero MotoCorp’s long-term strategy to get into the electric mobility industry (as the competition between established car companies and newer EV manufacturers is increasing).
The block deal took place after Hero MotoCorp announced its interest in up to ₹1,758 crore in Ather. Ather's Committee of Directors approved the offer on 27 August 2026. It was a cash deal, namely an acquisition of existing shares from an existing investor and hence a secondary transaction rather than a new equity issue of Ather Energy. It was expected to be completed by September 3.
Ather has been investing in financial and operational aspects since the IPO. The electric two-wheeler company recently approved a preferential fundraise of ₹1,200 crore through equity shares and convertible warrants for research and development, marketing services, and other corporate business needs, and also wants to expand the manufacturing plant.
Ather's growth has resulted in the company becoming a key player within India's electric scooter market. The company designs, manufactures, sells, and services electric two-wheelers and has its own charging infrastructure. Its product line includes scooters and products like the Rizta, which has helped in reaching customers looking for practical electric mobility solutions. The recent financial performance of Ather has been improving as the company reported a much smaller loss in the June quarter (2026) due to demand for its family-oriented scooter.
The latest investment shows the strategic importance of electric mobility for Hero MotoCorp. India's two-wheeler market is undergoing a major transformation as manufacturers respond to changing consumer preferences, regulatory developments, technological improvements, and increasing interest in cleaner transportation. Hero can expand its relationship with Ather by becoming involved in the development of electric vehicle technology, products, and the charging ecosystem of Ather.
Ather's stock market performance also matters to Ather's shareholders and investors, and they will find some comfort in the transaction. Ather Energy received the benefit of the big block deal. According to published reports, the stock rose as much as 7% on August 28 in trading, and buying interest was accompanied by a big spike in the trading volume. The block deal consisted of 1.18 crore shares at ₹1,480 each.
Investors were watching Ather with a lot of attention from the market, and it seems that Hero MotoCorp is growing to be a bigger player in the electric two-wheeler space. But market movements are determined by many factors, and the rise in shares of Ather does not mean that Ather is going to perform well all the time.
Hero MotoCorp is making this investment in order to become more involved in electric mobility while maintaining its leading position in the conventional two-wheeler market. As Ather is the company’s primary partner in electric mobility, the company will be able to make more money from this market and could be more strategically positioned in the electric scooters market that is moving more and more into India’s automotive market.
The transaction also illustrates the changing dynamics of India's electric vehicle industry. The market has been a mix of established automobile manufacturers, technology-oriented startups, and specialist EV companies. Competition is increasingly about vehicle design and pricing as well as battery technology, software, charging infrastructure, manufacturing capacity, and after-sales service.
Ather’s recent performance has further increased its appeal. Ather reported a turnover of ₹3,671.76 crore in FY26, ₹2,255 crore in FY25, and ₹1,753.8 crore in FY24. Ather had also been looking at the expansion of manufacturing capacity, as its Factory 3.0 project aims to expand its annual production capacity.
It comes a week after Hero MotoCorp also made an investment in Ather. Ather had previously received convertible warrants worth ₹960 crore from Hero in a preferential deal. So the ₹1,758 crore secondary share purchase is part of a more extensive series of transactions that have strengthened the relationship between the two companies.
Ather Energy has Hero MotoCorp as its largest shareholder, making it one of India’s top two-wheeler brands. At the same time, Ather remains an entirely different electric mobility company with products, technology, and brand identity. The increased stake represents a closer connection to Ather’s company without changing the business model.
The transaction is also important from the perspective of India's wider EV ambitions. Electric two-wheelers have become one of the most competitive segments in the country’s electric vehicle market. With low operating costs, availability in cities, and an increasing product range, the segment is expected to remain a key player in India’s transition to electric mobility.
But for investors, the deal would be mainly seen as a company and business strategy development, not a barometer of future stock performance. In the long run, Ather will have to adapt to sales growth, profitability, production capacity, competition, battery costs, consumer behavior, and policy. Hero MotoCorp is taking a bigger stake, but the success of the investment will depend on Ather's ability to execute its growth plan.
Hero MotoCorp's ₹1,758 crore acquisition is a game changer for the Indian electric two-wheeler industry. Through buying Ather shares at ₹1,480 each, Hero has raised its fully diluted share to around 32.8% from the current level of nearly 31%.
The deal is an example of how electric mobility is very much taken on in India’s automobile industry and how established companies are using their capital to build and strengthen their position in the e-mobility market. Ather is continuing to scale its product line, manufacturing capability, and business, and Hero MotoCorp is acquiring more and more of the company, so this partnership will be of major importance to the electric two-wheeler market in India.
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