As the major auto companies are shifting from ICE to EV mobility solutions, Hero Motocorp goes one step further and announced an investment of INR 525 crore (~USD 60 Million) in Euler Motors to increase its footprints in E3V, E4V and commercial EV segment. This step showcases the company’s intent to increase its market share in the EV segment.
Hero Motocorp-Euler Motor Investment Details
The investment was approved by Hero MotoCorp’s Board of Directors on 20 March 2025 and will be done through primary and secondary transactions in one or more tranches. Upon full completion, Hero will have a 32.5% stake in Euler Motors on a fully diluted basis. The new round has come within a year of the USD 24 million (~INR 200 crore) extended Series C round, led by Piramal Alternatives.
But this is more than just an investment. It’s a strategic move to capture a big share of the electric commercial vehicle market where electric three-wheelers are expected to be nearly 35% of the total sales shortly.
Founded in 2018 by Saurav Kumar, Euler Motors has quickly made a mark in India’s electric mobility space. With operations in over 30 cities and a flagship product – HiLoad EV – the most powerful electric cargo three-wheeler with a range of 170 km, Euler has built a reputation for innovation and reliability. Furthermore, Euler’s foray into electric commercial four-wheelers underscores its intent to be a complete player in the commercial EV space.
Financial Growth and Scalability
On the financial front, Euler Motors has shown excellent growth, with a turnover of INR 172 crore in FY24 from INR 49 crore in FY23. This growth reflects the growing demand for electric cargo vehicles in India’s logistics sector. Adding to its financial strength, Euler got USD 20 million debt funding from responsAbility Investments AG in January 2024 which will fuel its manufacturing capacity and R&D and distribution frameworks.
Leadership Perspective
Speaking on this development, Dr. Pawan Munjal, Executive Chairman of Hero MotoCorp said, “Our investment in Euler is a big step towards our vision to ‘Be the Future of Mobility’. This is foresight, collaboration and adaptability in a market that is changing at an incredible pace.”This is not an isolated investment for Hero MotoCorp. It’s part of a broader and well-thought-out EV strategy.
Hero MotoCorp already has a significant 37.20% stake in Ather Energy, one of India’s leading electric two-wheeler manufacturers which is gearing up for an IPO. This dual investment in E2V (electric two-wheeler) and E3V platforms will give Hero MotoCorp a wide canvas to play in the market, covering individual consumers, urban mobility needs and the growing demand for commercial eco-friendly vehicles.
Competitive Landscape and Market Potential
In the crowded space dominated by Mahindra Electric, Piaggio and Tata Motors and a host of new age startups like Altigreen, Hero’s backing of Euler Motors could be game-changing. Not only does this partnership open up possibilities for technological advancement and market penetration but also signals to investors and competition that Hero MotoCorp is serious about leading the green mobility revolution in India.
As global and domestic policies continue to favour clean energy adoption with incentives for EV production and usage, Hero MotoCorp’s moves could be a differentiator.
Conclusion
In short Hero MotoCorp-Euler Motors’ dealis more than just a financial partnership – it’s a well-thought-out move to ensure its longevity and leadership in an industry that’s undergoing a big shift. By widening its portfolio from electric scooters to electric commercial vehicles, Hero MotoCorp is positioning itself not just for immediate gains but for sustainable leadership in the Indian EV space for years to come.
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