Hero MotoCorp, one of the world’s largest manufacturers of motorcycles and scooters, has taken a significant leap into the electric three-wheeler segment by announcing a strategic investment of up to Rs 525 crore (approximately $60 million) in Euler Motors. This move not only diversifies Hero MotoCorp’s portfolio but also marks its continued commitment to the growing electric vehicle (EV) ecosystem in India.
This investment is Hero MotoCorp’s second major EV initiative, following its earlier acquisition of a 40% stake in Ather Energy, a leading electric two-wheeler manufacturer. The deal was first reported by Entrackr and was officially approved by Hero MotoCorp’s Board of Directors on March 20, 2025. The transaction, to be executed in one or more tranches, will provide Hero MotoCorp with a 32.5% stake in Euler Motors on a fully diluted basis.
This development comes on the heels of Euler Motors’ recent extended Series C funding round, in which it raised $24 million. With the fresh infusion of funds, Hero MotoCorp aims to accelerate its entry into the electric three-wheeler market, which is poised for significant growth in the coming years.
Strategic Implications of Hero MotoCorp’s Investment
Hero MotoCorp’s investment in Euler Motors reflects a strategic approach toward future mobility solutions. The Indian EV market, particularly the three-wheeler segment, is expected to witness exponential growth due to increasing urbanization, government incentives, and the shift toward sustainable transportation.
Pawan Munjal, Executive Chairman of Hero MotoCorp, described the investment as a bold step in alignment with the company’s vision to “Be the Future of Mobility.” He emphasized the importance of strategic partnerships in the evolving market landscape and highlighted the company’s focus on accelerated growth through both organic and inorganic expansion.
This investment provides Hero MotoCorp with a strategic foothold in the commercial EV sector, complementing its existing expertise in two-wheelers and enhancing its presence in India’s evolving EV ecosystem. With Euler Motors already demonstrating impressive growth, Hero MotoCorp is positioning itself to capitalize on the rapid electrification of last-mile logistics and urban mobility.
Euler Motors: A Rising Star in the Electric Three-Wheeler Market
Founded in 2018 by Saurav Kumar, Euler Motors has emerged as a key player in the electric commercial vehicle space. The company’s flagship product, the HiLoad EV, is marketed as the most powerful electric cargo three-wheeler, boasting a range of 170 kilometers on a single charge. This positions it as a strong contender in the last-mile delivery and logistics sector, which is increasingly transitioning to electric vehicles.
Euler Motors has been rapidly expanding its product portfolio and market presence. Recently, the company introduced its first electric commercial four-wheeler, further cementing its status as a leader in the sustainable mobility space. Currently operating in over 30 cities across India, Euler Motors has demonstrated impressive financial growth, with a turnover of Rs 172 crore in FY 2023-24, up from Rs 49 crore in the previous year.
Given its rapid expansion and strong product offerings, Euler Motors is well-positioned to leverage Hero MotoCorp’s investment to scale its operations further, enhance its manufacturing capabilities, and strengthen its research and development efforts.
Competitive Landscape and Market Potential
The electric three-wheeler market in India is highly competitive, with several established and emerging players vying for market share. Euler Motors faces competition from companies like Altigreen, Mahindra Electric, Piaggio, Kinetic Green, and Tata. However, its focus on high-performance commercial EVs and strong growth trajectory have positioned it as a formidable competitor.
The Indian government has been actively promoting electric mobility through policies such as the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme and state-level incentives. These initiatives have significantly boosted the adoption of electric three-wheelers, making them an attractive segment for investment.
Market analysts project that electric three-wheelers will account for a substantial portion of overall three-wheeler sales in the coming years, driven by declining battery costs, improved infrastructure, and growing environmental consciousness. By investing in Euler Motors, Hero MotoCorp is strategically positioning itself to capture a significant share of this burgeoning market.
Challenges and Opportunities Ahead
While the investment presents substantial growth opportunities, it also comes with challenges. The electric three-wheeler market, though expanding rapidly, faces hurdles such as limited charging infrastructure, range anxiety, and high initial costs. However, advancements in battery technology, increased government support, and rising fuel prices are expected to mitigate these challenges over time.
For Hero MotoCorp, entering the electric three-wheeler space presents an opportunity to diversify its product offerings beyond two-wheelers and capitalize on the evolving urban mobility landscape. The company’s extensive dealership network, strong brand presence, and expertise in manufacturing and distribution will play a crucial role in scaling Euler Motors’ operations.
Additionally, the investment aligns with Hero MotoCorp’s broader EV ambitions. With the company already holding a significant stake in Ather Energy, this move indicates a strategic effort to build a comprehensive electric mobility portfolio covering both passenger and commercial segments.
Future Prospects and Conclusion
Hero MotoCorp’s Rs 525 crore investment in Euler Motors marks a significant milestone in its EV journey. By entering the electric three-wheeler segment, the company is expanding its footprint in one of the fastest-growing segments of the EV industry. The partnership with Euler Motors is expected to drive innovation, enhance product offerings, and accelerate the adoption of electric commercial vehicles in India.
As the market for electric three-wheelers continues to expand, Hero MotoCorp is well-positioned to leverage this opportunity for long-term growth. The collaboration with Euler Motors is not only a strategic investment but also a step toward sustainable and efficient urban transportation.
With its robust financial backing, technological expertise, and commitment to sustainability, Hero MotoCorp is poised to play a crucial role in shaping the future of India’s electric mobility landscape. As the company continues to strengthen its presence in the EV sector, its investment in Euler Motors reaffirms its commitment to innovation and leadership in the evolving mobility ecosystem.
In the coming years, it will be interesting to see how this investment unfolds and contributes to the overall transformation of the electric vehicle industry in India. The partnership between Hero MotoCorp and Euler Motors is set to redefine the future of commercial electric mobility, making sustainable transportation more accessible and efficient for businesses and consumers alike.