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:

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.

Hero MotoCorp , the world's largest manufacturer of motorcycles and scooters, is making a bold move into the electric vehicle (EV) market. The company's board has approved a strategic investment of up to 5.25 billion rupees (525 crore) in Euler Motors Private Limited, signaling a significant expansion into the electric three-wheeler segment.

Strategic Expansion into Electric Vehicles

Hero MotoCorp's investment in Euler Motors aligns with its vision to "Be the Future of Mobility." This strategic move will give Hero MotoCorp a strong foothold in the rapidly growing electric three-wheeler market, where EVs are projected to account for 35% of total sales in the near future.

Investment Details

• Investment Amount: Up to 5.25 billion rupees (525 crore)
• Investment Structure: To be made in one or more tranches, consisting of a mix of primary and secondary investments
• Stake Acquisition: Approximately 32.5% stake on a fully diluted basis
• Completion Timeline: Expected by April 30, 2025

About Euler Motors

Euler Motors is a private limited company incorporated in India on January 15, 2015. The company specializes in designing, manufacturing, selling, and servicing electric three and four-wheeler vehicles. With a presence in over 30 cities across India, Euler Motors has shown impressive growth in recent years.

Strategic Rationale

Dr. Pawan Munjal, Executive Chairman of Hero MotoCorp, emphasized the significance of this investment, stating, "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."

Impact on Hero MotoCorp

This strategic investment allows Hero MotoCorp to:

1. Venture into the rapidly growing electric three and four-wheeler market
2. Diversify its emerging mobility portfolio
3. Unlock adjacent business opportunities
4. Cement its leadership in sustainable mobility

Looking Ahead

As the automotive industry continues to shift towards electrification, Hero MotoCorp's investment in Euler Motors positions the company at the forefront of this transition. By leveraging Euler's expertise in electric vehicle technology and Hero MotoCorp's manufacturing prowess and market reach, this partnership has the potential to accelerate the adoption of electric vehicles in India's commercial transportation sector.

The move also underscores Hero MotoCorp's commitment to sustainability and innovation, as it seeks to play a pivotal role in shaping the future of mobility in India and beyond.