HEROMOTOCO

’s EV Strategy Faces First Major Setback

has aggressively written down the carrying value of its minority stake in Netherlands-based electric motorcycle pioneer Zero Motorcycles by 92%. The investment's carrying value plummeted to ₹19 crore in FY26 from an initial ₹438 crore in FY24. Ownership Stake Dilution: This dramatic financial write-down occurred because Hero chose not to participate in a recent $35 million funding round. As a result, its equity shareholding was heavily diluted from 6.9% to 0.8%, forcing the manufacturer to recognize a fair value loss of ₹222 crore. Unbroken Technology Alliance: Despite this steep financial write-down, the active product collaboration remains intact. Both partners continue to co-develop premium, high-performance electric motorcycles under Hero's VIDA brand, notably progressing the collaborative Project VxZ initiative. The Spectacular Ather Contrast: Zero’s valuation crash stands in stark contrast to Hero's lucrative 30% promoter stake in Ather Energy. Following Ather's public listing, Hero's cumulative ₹1,700 crore investment has multiplied, reaching a market valuation of over ₹13,000 crore. Strategic and Operational Hurdles: Analysts suggest Zero has struggled to scale operations effectively, yielding minimal early synergy. The startup recently relocated its global headquarters from California to the Netherlands to focus on premium European market opportunities where demand remains high. Diversified EV Ambitions: Beyond its positions in Zero and Ather, Hero’s electric mobility roadmap includes a ₹525 crore investment in commercial EV brand Euler Motors, alongside an ongoing commercial partnership with Taiwanese battery-swapping leader Gogoro.