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Hero MotoCorp Invests Rs525 Crore in Euler Motors to Enter EV Three-Wheeler Market

Hero MotoCorp has announced a Rs525 crore investment in Euler Motors to expand into the electric three-wheeler segment. The investment, structured through primary and secondary acquisitions, will grant Hero a 32.5% stake in Euler Motors on a fully diluted basis. The transaction is expected to be completed by April 30, 2025. Euler Motors, known for its electric three- and four-wheelers, operates in 30 cities across India. The company has shown strong revenue growth, reporting a turnover of Rs1.72 billion in FY 2024, up from Rs49 crore in FY 2022.

This investment aligns with Hero MotoCorp’s long-term vision for sustainable mobility, as the electric three-wheeler market is projected to account for 35% of total sales in the near future. Hero's investment will be made entirely in cash, with no regulatory approvals required. The company will acquire equity shares and Series D Compulsory Convertible Preference Shares, with potential additional purchases from existing shareholders.

India’s EV sector has seen rapid growth, with sales reaching a record 1.95 million units in 2024, a 27% increase from 2023. Electric two-wheelers accounted for 59% of total EV sales, with Hero MotoCorp contributing 43,696 units.

This move strengthens Hero’s EV strategy and expands its footprint in the commercial electric vehicle space. It comes as India tightens safety regulations, with the Bureau of Indian Standards recently introducing new EV safety standards—IS 18590: 2024 and IS 18606: 2024—focused on powertrain and battery safety.