Hero MotoCorp, Zero Motorcycles and Ather: two investments, two very different outcomes

Hero MotoCorp’s latest financial results show two sharply diverging outcomes from its electric two-wheeler investments. The Indian manufacturer has slashed the book value of its stake in California-based Zero Motorcycles, while its long-held position in Ather Energy has grown into one of its most valuable holdings.

Zero Motorcycles stake diluted and written down

In its FY26 accounts, Hero MotoCorp reduced the carrying value of its Zero Motorcycles holding to €1.7 million, down 92% from €21.9 million in FY25. The value had already dropped from €39.8 million in FY24.

The write-down follows a funding round at Zero Motorcycles in which Hero did not participate, diluting its stake from 6.9% to 0.8%. Hero recorded a fair value loss of €20.2 million for the fiscal year as a result.

Hero’s original investment in Zero, approved by its board in September 2022, was set at up to US$60 million. The two companies formalized their partnership in March 2023, combining Zero’s electric powertrain technology with Hero’s manufacturing and distribution scale.

Despite the reduced equity stake, Hero maintains that the technology collaboration with Zero remains active. Concept models developed under the partnership, including Project VxZ, have been shown at EICMA under Hero’s VIDA brand. Industry reporting has pointed to two electric motorcycles in the 500-600cc equivalent segment targeted for launch in 2026-27.

Hero’s newly announced €290.9 million investment in Andhra Pradesh, which includes a €68.2 million Global Parts Centre in Tirupati, is described by the company as supporting production tied to the Zero partnership’s premium electric models, alongside its wider EV and export ambitions.

Ather Energy holding now valued above €1 billion

Hero’s position in Ather Energy shows a different trajectory. Since its initial investment in 2016, Hero has put approximately €154.5 million into the company. It now holds a 30% stake and is classified as a promoter of Ather. That stake is currently valued at more than €1.18 billion.

Two different bets

The two positions illustrate contrasting results from Hero’s minority investments in the electric two-wheeler space. The Zero stake, structured around technology access and product co-development, has been diluted to a minor holding following a funding round Hero opted out of. The Ather stake, built over nearly a decade, has become a core and highly valued part of Hero’s portfolio.

Source: Hero MotoCorp, Mint, RideApart