Hero MotoCorp Invests INR 525 Crore in Euler Motors, Acquires 32.5% Stake

Muskaan Kapoor

21 Mar 2025 — 2 min read

Hero MotoCorp Invests INR 525 Crore in Euler Motors

Hero MotoCorp, India’s largest two-wheeler maker, is making a major move into the electric vehicle (EV) space. The company has announced an investment of INR 525 crore (over $60 million) in Euler Motors, an electric three-wheeler startup. With this investment, Hero will acquire a 32.5% stake in Euler Motors. This marks Hero’s entry into the fast-growing electric three-wheeler market.

Hero MotoCorp’s Investment in Euler Motors

Hero MotoCorp will invest in phases, with the transaction expected to be completed by April 2025. The deal includes a mix of new investment into Euler Motors and share purchases from existing investors. This is Hero MotoCorp's second major move in the EV space, following a 40% stake in Ather Energy earlier this year.

This investment allows Hero MotoCorp to expand beyond two-wheelers and enter the commercial EV space. Pawan Munjal, Executive Chairman of Hero MotoCorp, stated that the move aligns with the company’s vision for sustainable mobility and exploring new business opportunities.

Euler Motors and Its Market Position

Founded in 2018, Euler Motors focuses on electric three-wheelers for cargo transport. The company’s flagship model, HiLoad EV, is one of the most powerful in its segment. It offers a range of 170 km on a single charge. Euler Motors operates in over 30 cities across India and recently expanded into the electric four-wheeler space.

The company has seen rapid growth. For the fiscal year ending in March 2024, Euler Motors’ operating revenue increased 3X to INR 189 crore in FY24 from INR 62 crore in the previous fiscal year. This growth reflects the rising demand for electric commercial vehicles.

Euler Motors faces competition from established players such as Mahindra Last Mile Mobility, YC Electric Vehicles, and Saera Electric Auto. However, with Hero MotoCorp’s backing, it could strengthen its market presence and scale operations further.

Why This Move Matters for Hero MotoCorp

The Indian electric three-wheeler market is expanding fast. Industry reports suggest that EVs could soon account for 35% of total sales in this category. Rising fuel costs and government incentives are driving adoption among businesses and fleet operators.

By investing in Euler Motors, Hero MotoCorp secures a strategic foothold in this growing market. The move helps the company diversify beyond two-wheelers and tap into a high-potential segment.

As India pushes for cleaner mobility solutions, Hero MotoCorp is positioning itself as a leader in the country’s EV transformation. This investment signals the company’s commitment to new-age mobility solutions and strengthens its presence in the evolving EV ecosystem.