Hero MotoCorp Increases Ather Energy Stake as EV Competition Intensifies

Hero MotoCorp has received approval to invest approximately ₹1,758 crore in Ather Energy, raising its fully diluted stake to 32.8% from 29.88%. This capital infusion underscores the company's commitment to the electric vehicle segment as it seeks to solidify its position against both legacy rivals and emerging startups. The investment comes at a time when the Indian EV market is experiencing rapid adoption, with retail sales of electric passenger vehicles crossing 2 lakh units in 2026.

Ather Energy has simultaneously launched its new metal-body scooter, Konarc, priced at approximately ₹1 lakh. Designed for the mass market, the scooter offers a 200-kilometer range and is intended to compete directly with established models like the TVS iQube and Bajaj Chetak. Ather plans to expand its portfolio to include an electric motorcycle and scale its Aurangabad manufacturing facility to a capacity of five lakh units by next year, signaling an aggressive growth trajectory.

The automotive sector remains dynamic, with Tata Motors rebranding its operations to 'Tata.Cars' and preparing for an analyst meeting on September 2, 2026. Despite a 46% year-on-year growth in domestic sales for Q1 FY27, Tata Motors reported an 80.25% drop in consolidated profits to ₹775 crore, citing supply chain issues at Jaguar Land Rover. Furthermore, the company will implement price hikes of up to ₹25,000 across its range starting September 1, 2026, to mitigate rising commodity costs.