Hero MotoCorp’s latest financial results show two sharply diverging results from its electric two-wheeler investment. The Indian manufacturer has slashed the book value of its stake in California-based Zero Motorcycles, while its long-standing position in Ather Energy has become one of its most valuable holdings.
Zero motorcycle share reduced and written off
In its FY26 accounts, Hero MotoCorp reduced the holding value of its Zero motorcycle by 92% to €1.7 million in FY25 from €21.9 million. The value had already fallen from €39.8 million in FY24.
The write-down follows a funding round in Zero Motorcycles in which Hero did not participate, reducing its stake from 6.9% to 0.8%. As a result Hero recorded a fair value loss of €20.2 million for the financial year.
Hero’s original investment in Xero, approved by its board in September 2022, was set at US$60 million. The two companies formalized their partnership in March 2023 by combining Zero’s electric powertrain technology with Hero’s manufacturing and distribution scale.
Despite the reduced equity stake, Hero says the technology collaboration with Xero remains active. Concept models developed under the partnership, including Project VxZ, have been showcased at EICMA under Hero’s VIDA brand. Industry reporting has pointed to two electric motorcycles in the 500-600 cc 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 Center in Tirupati, is said by the company to support its broader EV and export ambitions as well as the production of premium electric models from the Zero partnership.
Ather Energy holdings now valued at more than €1 billion
Hero status in Aether Energy shows a different trajectory. Since its initial investment in 2016, Hero has invested approximately €154.5 million in the company. It now holds 30% stake and is classified as a promoter of Ether. That stake is currently valued at more than €1.18 billion.
two different bets
Both these situations indicate adverse consequences for Hero’s minority investment in the electric two-wheeler sector. The zero stake, structured around technology access and product co-development, has been reduced to a nominal stake after Hero exited the funding round. The Ether stake, built up over nearly a decade, has become a major and highly valuable part of Hero’s portfolio.
Source: Hero MotoCorp, peppermint, ride separately
