Hero MotoCorp Accelerates into Electric Vehicle Market with Rs 525 Crore Investment in Euler Motors
Hero MotoCorp has approved a strategic investment of up to Rs 525 crore in Euler Motors, acquiring a 32.5% stake. This move marks Hero's entry into the electric three-wheeler market. Euler Motors, specializing in electric three-wheelers, has shown significant growth with turnover increasing from Rs 25 crore in FY 2021-22 to Rs 172 crore in FY 2023-24. The investment, expected to complete by April 2025, involves both primary and secondary transactions, requiring no regulatory approvals.

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Hero MotoCorp , the world's largest manufacturer of motorcycles and scooters, has announced a significant move into the electric vehicle (EV) market. The company's board has approved a strategic investment of up to Rs 525 crore in Euler Motors Private Limited, a prominent player in the electric three-wheeler segment.
Strategic Expansion into Electric Three-Wheelers
The investment, to be made in one or more tranches, will give Hero MotoCorp approximately a 32.5% stake in Euler Motors on a fully diluted basis. This move marks Hero MotoCorp's entry into the rapidly growing electric three-wheeler market, where EVs are projected to account for 35% of total sales in the near future.
About Euler Motors
Euler Motors, incorporated in January 2015, has established a presence in over 30 cities across India. The company specializes in designing, manufacturing, selling, and servicing electric three-wheelers. Recently, Euler Motors expanded its portfolio by launching its first electric commercial four-wheeler.
Financial Performance of Euler Motors
Euler Motors has shown impressive growth over the past three years:
Financial Year | Turnover (in crore) |
---|---|
2021-22 | 25.00 |
2022-23 | 49.00 |
2023-24 | 172.00 |
Hero MotoCorp's Vision
Dr. Pawan Munjal, Executive Chairman of Hero MotoCorp, stated, "Our strategic investment in Euler is a bold step towards realizing our vision to 'Be the Future of Mobility.' This investment reinforces our commitment to accelerated growth through both organic and inorganic expansion, while highlighting the power of collaboration and adaptability in an ever-evolving market."
Investment Details
The investment will consist of a mix of primary and secondary transactions. Hero MotoCorp will invest in Equity Shares and Series D Compulsory Convertible Preference Shares of Euler Motors. Additionally, the company may acquire shares from existing shareholders of Euler through secondary sales.
Timeline and Regulatory Approvals
Hero MotoCorp expects to complete the acquisition by April 30, 2025. The company has stated that no governmental or regulatory approvals are required for this strategic investment.
Implications for the EV Market
This move by Hero MotoCorp signifies a major shift in the Indian automotive landscape, as traditional two-wheeler manufacturers are increasingly diversifying into the electric vehicle segment. The investment in Euler Motors allows Hero MotoCorp to tap into the growing demand for electric three-wheelers and four-wheelers, potentially reshaping the future of urban mobility in India.
As the EV market continues to evolve, this strategic partnership between Hero MotoCorp and Euler Motors could play a crucial role in accelerating the adoption of electric vehicles in the commercial segment, contributing to sustainable transportation solutions in India's cities.
Historical Stock Returns for Hero Motocorp
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-0.27% | +2.89% | +7.98% | -27.71% | -11.28% | +105.45% |