Hero MotoCorp has announced an investment of up to INR 525 crores in Euler Motors Private Limited, a key player in the electric three- and four-wheeler market. This investment marks Hero’s entry into the rapidly growing electric three-wheeler segment, where EVs are expected to make up 35% of total sales in the near future.
The INR 525 crore investment will be executed in multiple tranches through a mix of primary and secondary transactions. Hero MotoCorp will acquire equity shares and Series D Compulsory Convertible Preference Shares, ultimately securing a fully diluted 32.5% stake in Euler Motors. Additionally, the company may purchase shares from existing Euler shareholders under the same investment amount. The deal is expected to be finalized by April 30, 2025.
Euler Motors, already well-established in the three-wheeler market, has recently expanded into electric commercial four-wheelers. With this investment, Hero MotoCorp strengthens its foothold in the evolving EV market, reinforcing its commitment to sustainable mobility.
Hero has been actively expanding its EV portfolio, partnering with Zero Motorcycles for electric technology, launching its own Vida sub-brand, and making a significant investment in Ather Energy. While these strategic moves help Hero acquire new capabilities with lower risk, its diversification pace has been slower than competitors like Bajaj and TVS, who have successfully expanded beyond commuter motorcycles.
