Hero MotoCorp (HMCL), the leading two-wheeler manufacturer, is making a strategic entry into the rapidly growing electric three-wheeler market with an investment of up to Rs 525 crore (approximately $60 million) in Euler Motors, a company specializing in electric three-wheelers.
HMCL’s primary investment will be in Equity Shares and Series D Compulsory Convertible Preference Shares, giving it an approximate 32.5% stake on a fully diluted basis. Additionally, a portion of the investment may be used to acquire shares from existing Euler Motors shareholders through a secondary sale, the company stated in a regulatory filing.
The stake acquisition is expected to be completed by April 30, 2026.
“As we strengthen and diversify our presence in emerging mobility landscape, this investment allows Hero MotoCorp to venture into a rapidly growing electric three and four-wheeler market, while unlocking adjacent business opportunities and continuing to cement its leadership in the future of sustainable mobility,” Pawan Munjal, Executive Chairman, Hero MotoCorp.
This is the second major investment made by Hero in the electric vehicle space following a 40% stake in IPO-ready Ather Energy this year.
Hero MotoCrop said that its investment in Euler will provide them with a strong foothold in the fast-growing electric three-wheeler market, where EVs are projected to account for 35% of total sales in the near future.
Euler Motors has a presence in 30 cities in India and is engaged in the designing, manufacturing and sale & service of electric three-wheelers. The company recently launched its first electric commercial four-wheeler.
Euler Motors’ turnover has increased from Rs 25 crore in FY2022 to Rs 172 crore in FY24. The company competes with Mahindra Last Mile Mobility, YC Electric Vehicles and Saera Electric Auto in this space.