In a strategic move towards sustainability and innovation, Hero MotoCorp Limited, the world’s largest manufacturer of motorcycles and scooters, has announced a significant investment of up to ₹525 crore in Euler Motors Private Limited. The decision, approved by the company’s board on March 20, 2025, marks Hero MotoCorp’s official entry into the electric three-wheeler (3W) and four-wheeler (4W) segment.
The Hero Motocorp share price is trading higher by 1.74% at ₹3,659.50 as of 12:35 PM on March 21, 2025.
The investment—comprising both primary and secondary funding—will be made in one or more tranches, resulting in Hero MotoCorp acquiring an estimated 32.5 per cent stake (on a fully diluted basis) in Euler Motors. The funding will be routed via a mix of equity shares and Series D Compulsorily Convertible Preference Shares (CCPS). The transaction is expected to be completed by 30th April 2025.
This acquisition does not fall under the category of a related party transaction, and the consideration is entirely in cash. The move aligns with Hero’s broader goal of expanding into adjacent mobility segments and fortifying its presence in India’s rapidly growing EV market.
Founded on January 15, 2015, Euler Motors is a New Delhi-based electric vehicle manufacturer with operations in over 30 Indian cities. The company specialises in the design, manufacture, sale, and servicing of electric three- and four-wheelers. Its revenue has seen considerable growth in recent years:
Recently, Euler launched its first electric commercial four-wheeler, further diversifying its EV portfolio.
Hero MotoCorp’s Executive Chairman, Dr Pawan Munjal, commented on the development, stating, “Our strategic investment in Euler is a bold step towards realising our vision to ‘Be the Future of Mobility’ This investment allows Hero MotoCorp to venture into a rapidly growing electric 3 and 4-wheeler market, while unlocking adjacent business opportunities.”
Hero MotoCorp aims to use this partnership to strengthen its position in India’s evolving electric mobility landscape, with projections suggesting electric three-wheelers could soon represent 35 per cent of total segment sales.
In a separate announcement, Hero MotoCorp also shared its plans to incorporate a not-for-profit company under Section 8 of the Companies Act, 2013. This new entity will focus on Corporate Social Responsibility (CSR) initiatives and will be wholly funded through cash subscription by Hero MotoCorp.
This strategic investment signifies Hero MotoCorp’s commitment to expanding its footprint in India’s evolving electric mobility space. With Euler Motors’ growing presence, the partnership aims to tap into the rising demand for sustainable transport solutions.
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Published on: Mar 21, 2025, 3:04 PM IST
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