Hero MotoCorp, the leading two-wheeler manufacturer, has made a decisive move into the electric three-wheeler market with a strategic INR 525 crore ($60 million) investment in Euler Motors.

This investment in the electric three-wheeler sector strengthens Hero MotoCorp’s position in the market. It highlights the growing significance of EV expansion. The deal includes Equity Shares and Series D Compulsory Convertible Preference Shares, granting Hero MotoCorp a 32.5 percent stake in Euler Motors on a fully diluted basis.

Additionally, the investment may include acquiring shares from existing Euler Motors shareholders, with completion expected by April 30, 2026.

This investment marks Hero MotoCorp’s second major push into the EV space, following its 40 percent stake acquisition in IPO-ready Ather Energy earlier this year. With the electric three-wheeler market projected to contribute 35 percent of total sales soon, this move positions Hero MotoCorp as a key player in India’s sustainable mobility transition.

Euler Motor, Growing Market Presence

Founded in 2018 by Saurav Kumar, Euler specializes in designing, manufacturing, and servicing electric three-wheelers. Its flagship model, the HiLoad EV, leads the segment with a best-in-class 170 km range.

Euler has expanded operations to 30 cities across India and recently entered the electric commercial four-wheeler market. The company’s financial growth underscores its potential. In FY2024, Euler Motors reported a revenue surge to INR 172 crore, up from INR 25 crore in FY2022.

Euler faces competition from leading players such as Mahindra Last Mile Mobility, Altigreen, Piaggio, Kinetic Green, and Tata Motors in the electric three-wheeler market. With EV adoption increasing, Euler Motors is strategically positioned for further expansion.

Strategic Industry Impact

Hero MotoCorp’s investment in the electric three-wheeler market aligns with global sustainability trends and India’s push for green mobility solutions. With EV adoption on the rise, this investment enhances Hero MotoCorp’s market presence and strengthens Euler Motors’ growth trajectory. As the electric three-wheeler market evolves, Hero MotoCorp’s strategic expansion signals a robust commitment to shaping the future of EV mobility.

“As we strengthen and diversify our presence in the emerging mobility landscape, this investment allows Hero MotoCorp to venture into a rapidly growing electric three and four-wheeler market while unlocking adjacent business opportunities and continuing to cement its leadership in the future of sustainable mobility,” Pawan Munjal, Executive Chairman, Hero MotoCorp.

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