Hero MotoCorp (HMC), the country's largest two-wheeler maker, is in advanced talks to invest Rs 900 crore in Bengaluru-based startup Altigreen Propulsion Labs, which makes electric three-wheelers, to enter the segment.
The Pawan Munjal-led company is likely to invest up to Rs 900 crore for a stake in the 11-year-old company, the Economic Times reported, adding that due diligence has been completed.
If the deal is successful, Altigreen will get a heavyweight investor that can help it scale up fast.
Altigreen is an electric vehicle technology and solutions provider for commercial last mile transportation through two-, three- and four-wheeled vehicles.
Also Read | RIL invests Rs 50.16 crore in Bengaluru-based EV tech company Altigreen
"The companies are moving very fast towards a closure of the deal," a person aware of the plans told ET.
Moneycontrol couldn't independently verify the report.
Also Read | Hero MotoCorp plans to expand electric model range to increase customer base
Hero MotoCorp would diversify into the new mobility segment of e-three wheelers with this deal.
If the deal goes through, this will be the second largest investment by HMC in an electric vehicle (EV) maker. It holds a 40 percent stake in Ather Energy, having invested Rs 124 crore in June for an additional 2.2 percent stake.
HMC is going to witness huge growth in the EV segment this year as well as in the next year, Chief Business Officer for Emerging Mobility BU Swadesh Srivastava said in May.
Hero MotoCorp said its wholesales increased 5 percent year-on-year to 5,12,360 units in August.
The two-wheeler major had dispatched 4,88,717 units to dealers in August 2023.
Hero MotoCorp's standalone net profit rose 36 percent to Rs 1,122.63 crore in Q1FY25 from Rs 824.72 crore in the corresponding quarter previous year, driven by strong sales, recovery in the rural market and new launches in the 125cc segment like the Xtreme 125R. The numbers, however, missed Street estimates.
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