NEW DELHI: Hero MotoCorp, which is all set to launch its first electric vehicle (EV) on October 7, is finalizing a collaboration agreement with Zero Motorcycles, a California (USA)-based manufacturer of premium electric motorcycles and powertrains.
The company’s board also approved an equity investment up to US$60 million in Zero Motorcycles and its stake is expected to be around 6.4% on a fully diluted basis.
The collaboration, according to Hero MotoCorp, will focus on co-developing electric motorcycles.
“In keeping with its vision “Be the Future of Mobility”, Hero MotoCorp Ltd., is addressing the electric mobility space through a range of organic and inorganic /collaboration initiatives. This collaboration will focus on co-developing Electric motorcycles.” Hero MotoCorp said in a regulatory filing.
It added that the percentage of shareholding will depend upon exact contribution by the Company as well as completion of overall fund raises by Zero Motorcycles Inc. Zero’s consolidated revenue for the year ended 31st December 2021 was US$60.7 million.
This fresh investment by Hero comes after it had announced early this year an investment of more than $56 million in one of India’s known EV makers- Ather Energy. Hero has a stake of over 35% in Ather. Hero is launching its first electric product, under its emerging mobility brand Vida, Powered by Hero, on October 7, 2022.