Hero MotoCorp to invest up to Rs. 525 crore in Euler Motors, marking its entry into the electric three-wheeler market. The investment, executed in multiple tranches, aligns with the growing EV sector, where electric three-wheelers are expected to account for 35% of total sales soon.
Hero MotoCorp’s Rs. 525 crore investment in Euler Motors will include primary and secondary transactions, securing a 32.5% stake on a fully diluted basis. The deal, expected to close by April 30, 2025, involves acquiring equity shares and Series D preference shares, with potential secondary share purchases.
Euler Motors, specializing in electric three- and four-wheelers, operates in 30+ Indian cities and has shown strong growth, with revenue rising from Rs. 25 crore in 2022 to Rs. 172 crore in FY24.
“Our strategic investment in Euler marks a bold step toward our vision of ‘Being the Future of Mobility.’ This move underscores our commitment to accelerated growth through both organic and inorganic expansion, while emphasizing the power of collaboration and adaptability in an ever-evolving market.
As a global automotive leader, Hero MotoCorp remains dedicated to sustainability, innovation, and customer-centric progress. Strengthening and diversifying our presence in the emerging mobility landscape, this investment enables us to enter the rapidly expanding electric three- and four-wheeler market, unlock adjacent business opportunities, and further solidify our leadership in the future of sustainable mobility,” said Dr. Pawan Munjal, Executive Chairman, Hero MotoCorp.
Euler Motors recently expanded its portfolio with the launch of its first electric commercial four-wheeler, complementing its established presence in the three-wheeler segment. This acquisition provides Hero MotoCorp a strong foothold in a rapidly evolving market segment, furthering its leadership in sustainable mobility solutions.
Hero MotoCorp has faced challenges in expanding beyond commuter motorcycles. In the scooter market, it has struggled against Honda’s dominance, with models like Destini and Pleasure underperforming. For premium motorcycles, Hero has relied on partnerships, including investments in Erik Buell Racing and a collaboration with Harley-Davidson, highlighting difficulties in developing in-house expertise.
In the EV sector, Hero has taken an investment-driven approach, backing Ather Energy, launching the Vida sub-brand, and partnering with Zero Motorcycles. While this strategy mitigates risk, it has led to slower diversification compared to rivals like Bajaj and TVS, who have expanded more successfully.
