Hero MotoCorp, the world’s largest two-wheeler manufacturer, has announced a strategic investment of ₹525 crore in Euler Motors, an emerging electric vehicle (EV) startup specializing in commercial three-wheelers and four-wheelers. This move marks Hero MotoCorp’s expansion into the fast-growing EV sector, reinforcing its commitment to sustainable and innovative mobility solutions. The investment, approved by Hero MotoCorp’s board on March 20, 2025, will be executed in multiple tranches through a mix of primary and secondary funding. Once the deal is complete, Hero MotoCorp will own approximately 32.5% of Euler Motors on a fully diluted basis.
Euler Motors, founded in 2018, has steadily grown as a key player in the Indian EV ecosystem. The company focuses on the design, manufacturing, and servicing of electric three-wheelers and commercial four-wheelers. With operations spanning 30 cities across India, Euler Motors reported a revenue increase from ₹25 crore in FY22 to ₹172 crore in FY24. Hero MotoCorp’s funding will accelerate Euler’s growth, expand its product portfolio, and drive EV adoption in the commercial sector. This strategic investment supports Hero MotoCorp’s long-term plan to diversify into the EV segment, which previously focused on two-wheelers.
Hero MotoCorp has made several moves into the EV sector, including a prior 40% stake in Ather Energy. With the EV market projected to grow significantly, this investment provides Hero with a strong foothold in the commercial three-wheeler space, where electric vehicles are anticipated to make up 35% of total sales in the coming years.
1. Euler Motors: A Rising Star in India’s EV Sector
1.1 Founding and Vision
Euler Motors was founded in 2018 by Saurav Kumar with a vision to revolutionize last-mile logistics and commercial transportation through electric vehicles. The company aimed to develop sustainable, high-performance EVs that cater to businesses looking for cost-effective and eco-friendly alternatives.
1.2 Business and Revenue Model
Euler Motors generates revenue through the manufacturing, sale, and servicing of electric three-wheelers and commercial four-wheelers. The company offers leasing and financing options to customers, ensuring affordability and easy adoption. Euler’s revenue grew from ₹25 crore in FY22 to ₹172 crore in FY24, demonstrating strong market traction.
1.3 Product Line and Market Presence
Euler Motors specializes in electric cargo three-wheelers, with its flagship model, the HiLoad EV, known for its 170-kilometer range. Recently, the company expanded into electric four-wheelers, further diversifying its offerings. It has a presence in over 30 cities in India, catering to logistics firms, e-commerce companies, and fleet operators.
2. Hero MotoCorp’s Strategic Investment in Euler Motors
2.1 Investment Breakdown
Hero MotoCorp will invest up to ₹525 crore in Euler Motors through a combination of primary and secondary funding. The investment will take place in multiple tranches, with completion expected by April 30, 2025. Hero MotoCorp will acquire a 32.5% stake in Euler Motors on a fully diluted basis.
2.2 Rationale Behind the Investment
Hero MotoCorp has been actively seeking to expand its EV portfolio beyond two-wheelers. With electric three-wheelers projected to account for 35% of total sales in the near future, this investment strengthens Hero’s position in the commercial EV market.
2.3 Previous Investments in the EV Sector
Hero MotoCorp has already invested in Ather Energy, holding a 40% stake in the electric two-wheeler company. This latest investment in Euler Motors signifies Hero’s strategy to capture a larger share of India’s evolving EV landscape.
3. Implications for the Indian EV Market
3.1 Growth of the Commercial EV Segment
The demand for electric commercial vehicles is rising due to government incentives, fuel price volatility, and a shift toward sustainable transport solutions. The market for electric three-wheelers is projected to grow significantly, making this a well-timed investment.
3.2 Competition in the Sector
Euler Motors competes with established players like Mahindra Electric, Piaggio, Kinetic Green, and Tata Motors in the commercial EV segment. The funding from Hero MotoCorp will enable Euler to scale operations and remain competitive.
3.3 Future Market Projections
The Indian EV market is expected to witness rapid growth, driven by technological advancements, policy support, and increasing consumer awareness. Hero MotoCorp’s entry into commercial EVs positions it to capitalize on this trend.
4. Learning for Startups and Entrepreneurs
4.1 Strategic Investments Fuel Growth
Startups in emerging industries can accelerate growth through strategic investments from established players. Euler Motors’ funding from Hero MotoCorp highlights the importance of securing the right investors.
4.2 Market Timing is Crucial
Euler Motors entered the commercial EV segment at the right time, as demand for sustainable transport solutions surged. Startups should assess market trends and act swiftly to capitalize on growth opportunities.
4.3 Diversification Strengthens Market Position
Hero MotoCorp’s expansion into three-wheeler EVs showcases the importance of diversifying business portfolios. Startups should explore adjacent markets to mitigate risks and maximize opportunities.
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