21 Mar 2025
Hero MotoCorp’s Big Move into Electric Vehicles
Hero MotoCorp, a leading two-wheeler manufacturer, has announced a strategic investment of up to Rs. 525 crore (approximately $60 million) in Euler Motors, a company focused on electric three-wheelers and four-wheelers. This investment marks Hero MotoCorp’s entry into the fast-growing electric three-wheeler market.
Hero MotoCorp's board approved the investment of directors on March 20, 2025. This investment follows Hero’s earlier move into the EV sector when it acquired a 40% stake in Ather Energy.
Investment Breakdown and Stake in Euler Motors
Hero MotoCorp’s investment will be made in stages, allowing it to acquire equity shares and Series D Compulsory Convertible Preference Shares (CCPS). After completion, Hero MotoCorp will hold a 32.5% stake in Euler Motors on a fully diluted basis.
Additionally, Hero MotoCorp may acquire shares from existing Euler shareholders through secondary transactions within the same investment amount. The entire deal is expected to be completed by April 30, 2025.
This funding round comes within a year of Euler Motors’ extended Series C round, which raised $24 million.
Why is Hero MotoCorp Investing in Euler Motors?
The electric three-wheeler market is rapidly growing in India, and Hero MotoCorp aims to strengthen its presence in the sector. The company believes that EVs will soon account for 35% of total vehicle sales.
Euler Motors has been expanding steadily, now operating in over 30 cities across India. Its financial performance has also shown impressive growth. For the financial year 2023-24, Euler Motors reported a turnover of Rs. 172 crore, a significant increase from Rs. 49 crore in 2022-23 and Rs. 25 crore in 2021-22.
Official Statement from Hero MotoCorp
Dr Pawan Munjal, Executive Chairman of Hero MotoCorp, shared his thoughts on this investment. He said, “Our strategic investment in Euler is a bold step towards realising our vision to ‘Be the Future of Mobility.’ This investment reinforces our commitment to accelerated growth through both organic and inorganic expansion while highlighting the power of collaboration and adaptability in an ever-evolving market.”
He also stated that this move aligns with Hero MotoCorp’s focus on sustainability, innovation, and customer-driven growth. By partnering with Euler Motors, Hero MotoCorp can strengthen its position in the electric three-wheeler and four-wheeler market.
Euler Motors Expands its Portfolio
Saurav Kumar founded Euler Motors in 2018. The company is known for its flagship model, the HiLoad EV, which is regarded as the most powerful electric cargo three-wheeler with a range of 170 kilometres.
Recently, Euler Motors expanded its lineup by launching its first electric commercial four-wheeler. This diversification strengthens its market presence and gives Hero MotoCorp a foothold in both the three- and four-wheeler EV segments.
Competition in the Electric Three-Wheeler Market
With this investment, Hero MotoCorp is entering a highly competitive market. Euler Motors competes with companies like Altigreen, as well as established players such as Mahindra Electric, Piaggio, Kinetic Green, and Tata. The demand for electric cargo and passenger three-wheelers continues to rise, making this an attractive sector for investment.
Establishment of a CSR-Focused Section 8 Company
Alongside its EV investment, Hero MotoCorp’s board has approved the formation of a new non-profit company under Section 8 of the Companies Act, 2013. This new entity will focus on corporate social responsibility (CSR) initiatives.
Purpose of the CSR Entity
Hero MotoCorp will fully fund this non-profit entity, though specific details regarding its name and objectives are yet to be disclosed. The company confirmed that after incorporation, the entity will be classified as a related party to Hero MotoCorp. However, no promoter, promoter group, or associated companies will hold any personal stake in it beyond this relationship.
The incorporation process will proceed after obtaining the necessary government and regulatory approvals, though no timeline or cost details have been announced yet.
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