5 Sept 2024
Hero is hosting advanced talks with Altigreen Propulsion Labs, an 11-year-old Bengaluru-based manufacturer of electric three-wheelers.
With all its competitors, Mahindra & Mahindra, TVS Motor and Bajaj Auto, present in the three-wheeler segment, Hero MotorCorp is planning a debut in the market. It is in the advanced level of discussions to invest ₹900 crore in Altigreen Propulsion Labs to manufacture electric three-wheelers (E3Ws).
The discussions have been ongoing for around nine months. Altigreen’s electric three-wheelers are used by e-commerce companies for last-mile deliveries of vegetables, gas cylinders, poultry, and dairy products. Since its launch in 2020, Altigreen has sold 5,000 units. Bajaj Auto sells 3,500 vehicles per month, and Mahindra sells 7,000 vehicles per month. It is now working on an electric four-wheeler.
If the deal goes through, it will be Hero Group's second-largest investment in the EV segment after electric two-wheeler manufacturer Ather Energy, where it holds a 40% stake. In June, Hero invested ₹124 crore to buy an additional 2.2% stake in Ather Energy.