Hero MotoCorp Enters Electric Three-Wheeler Market

3 Sep 2024 , 11:54 AM

Hero MotoCorp (HMC), the two-wheeler market leader, is in advanced talks to make a large strategic investment in Altigreen Propulsion Labs, a Bengaluru-based startup that manufactures electric three-wheelers (E3Ws), paving the way for the Pawan Munjal-led firm to enter the fragmented and rapidly growing segment, pitting it against Mahindra & Mahindra (M&M) and Bajaj Auto.

According to news reports, Hero plans to invest up to ₹900 crore for a stake in the 11-year-old company. They stated that due diligence had been conducted.

If the transaction goes through, Altigreen will get a major investor who can help it expand up quickly and make greater inroads in key areas.

Hero MotoCorp will diversify into the new mobility market of e-three wheelers, where rival Bajaj Auto has a head start and is led by M&M.

If the purchase goes through, Hero will have made its second big investment in an electric vehicle (EV) manufacturer. It presently has a 38.2% interest in Ather Energy, an IPO-bound electric two-wheeler manufacturer, after investing Rs 124 crore in June for an additional 2.2%. That funding occurred at an imputed valuation of Rs 5,636 crore, up from the Rs 4,666 crore at which Hero MotoCorp initially committed Rs 140 crore in December 2023.

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