In a strategic move towards bolstering its presence in the electric vehicle (EV) sector, Hero MotoCorp, one of the largest two-wheeler manufacturers in India, has announced a major investment of up to INR 525 Cr in Euler Motors, an emerging electric three-wheeler manufacturer. The investment is seen as part of Hero MotoCorp’s long-term strategy to diversify its product portfolio and strengthen its position in the rapidly growing electric mobility market.
Hero MotoCorp’s Investment in Euler Motors
On March 20, 2025, Hero MotoCorp made an official filing with the stock exchanges, revealing that its board had approved a proposal to acquire a “significant stake” in Euler Motors, a startup focused on manufacturing electric three-wheelers. Hero MotoCorp plans to invest in the EV company through a combination of primary and secondary investments in one or more tranches.
As per the deal, Hero MotoCorp will acquire equity shares and Series D compulsory convertible preference shares (CCPS) in Euler Motors, which will provide the auto giant with nearly a 32.5% stake on a fully-diluted basis. The move marks a significant step for Hero MotoCorp as it expands its footprint in the EV sector, particularly in the electric three-wheeler market, which is witnessing rapid growth in India and globally.
Why Hero MotoCorp’s Investment in Euler Motors Matters
The Indian electric vehicle industry is expected to experience substantial growth in the coming years, with the government pushing for increased adoption of EVs through various initiatives and incentives. Hero MotoCorp’s investment in Euler Motors aligns with this shift towards sustainable mobility solutions. Euler Motors, known for its electric three-wheelers, has made significant strides in the electric vehicle market with products that cater to both passenger and cargo segments.
By investing in Euler Motors, Hero MotoCorp is strategically positioning itself as a key player in the Indian electric mobility landscape. The company aims to tap into the rapidly expanding market for electric three-wheelers, which are increasingly being seen as a viable alternative to traditional fossil fuel-powered vehicles due to their lower operating costs, government incentives, and environmental benefits.
Strategic Growth for Hero MotoCorp
Hero MotoCorp’s investment in Euler Motors is not just about expanding its EV offerings, but also about enhancing its overall portfolio and capabilities in the electric vehicle market. The investment signals Hero’s confidence in Euler Motors’ ability to drive innovation in the electric three-wheeler segment and contribute to India’s EV ecosystem.
The deal also provides Hero MotoCorp with an opportunity to leverage Euler Motors’ technology and expertise in the electric vehicle manufacturing process. The partnership will help Hero strengthen its research and development capabilities, ensuring that the company remains competitive in the fast-evolving electric vehicle industry.
Euler Motors: A Rising Star in Electric Three-Wheelers
Euler Motors, founded in 2018, has quickly made a name for itself as a leading manufacturer of electric three-wheelers in India. The company’s electric vehicles are designed to offer a sustainable, cost-effective alternative to conventional three-wheelers used for goods transportation and passenger services. With the support of Hero MotoCorp, Euler Motors is poised to scale up its operations, expand its product lineup, and accelerate its market penetration.
Euler’s electric three-wheelers are already being used in several cities across India, with a growing demand for clean, efficient, and affordable transportation solutions. The company’s products are designed with a focus on durability, cost-effectiveness, and performance, making them a popular choice for fleet operators and small business owners looking to reduce their carbon footprint and operating costs.
The Future of Electric Mobility in India
India’s electric vehicle market is expected to grow exponentially over the next decade, with a significant push from the government towards creating an electric vehicle ecosystem. The government’s plans to increase EV adoption through incentives, subsidies, and infrastructure development have set the stage for electric mobility to become mainstream in India.
Hero MotoCorp’s investment in Euler Motors is a key step in accelerating this transition to electric mobility. The partnership will not only help Hero expand its electric vehicle offerings but also contribute to the country’s goal of reducing carbon emissions and fostering sustainable transportation solutions.
Conclusion
Hero MotoCorp’s investment of INR 525 Cr in Euler Motors marks a significant milestone in the Indian electric vehicle industry. By acquiring a 32.5% stake in the electric three-wheeler manufacturer, Hero MotoCorp is positioning itself as a key player in the growing electric mobility market. The strategic investment is expected to accelerate Euler Motors’ growth and innovation, while providing Hero MotoCorp with the opportunity to expand its electric vehicle portfolio. As the electric vehicle market continues to evolve, this partnership will help both companies stay ahead of the curve in shaping the future of sustainable mobility in India.
