Hero MotoCorp, the world’s top two-wheeler maker, plans to invest up to $66.5 million in Ather Energy, an Indian electric vehicle (EV) startup. Hero MotoCorp already owns a 33.1% stake in Ather Energy. The startup recently faced challenges when the Indian Ministry of Heavy Industries reduced subsidies for two-wheelers. Ather Energy had been on track to reach $1 billion in revenue but was in talks for a $250 million funding round when the policy change occurred.
Two-wheelers are leading the electrification efforts in India, where the cost of battery-powered cars remains high. By transitioning over 70% of India’s total vehicles, which are two-wheelers, to EVs, the country aims to address air pollution issues. Consulting firm Arthur D. Little projects that by 2030, electric vehicles will make up about 30% of all vehicle sales in India. Hero MotoCorp has been working to expand its electric vehicle portfolio and launched its first EV last year.
