Hero MotoCorp Invests ₹525 Crore in Euler Motors to Expand EV Footprint

21 Mar 2025 , 10:01 AM

Hero MotoCorp Ltd will make a strategic investment of up to ₹525 crore in Euler Motors Private Limited as part of its entry into the electric three-wheeler space. The investment will be made in multiple tranches and will help bolster Hero MotoCorp’s strategy to accelerate its foray in the EV market, the company said in a statement.

As part of the agreement, Hero MotoCorp will acquire equity shares and Series D compulsory convertible preference shares (CCPS), entailing an estimated stake of about 32.5% on a fully diluted basis in Euler Motors. Some of the proceeds could also be used to purchase shares from existing shareholders.

Hero MotoCorp’s investment enhances its presence in the fast-growing segment of electric three-wheelers and now, EV penetration in total sales is projected to be around 35% very soon. Euler Motors, which is present across 30 cities in India, designs, manufactures, sells, and services electric three-wheelers. His company also has recently unveiled its first commercial electric four-wheeler.

As part of this investment, Hero MotoCorp’s Board has also approved the formation of Section 8 company under the Companies Act, 2013 to undertake and drive Corporate Social Responsibility (CSR) initiatives.

Hero MotoCorp Executive Chairman Pawan Munjal, commenting on the development, said: “Our significant investment in Euler Motors is a progressive step in our journey to ‘Be the Future of Mobility’. This transition allows us to invest and focus on sustainable growth, both through organic means and strategic partnerships, as we evolve the mobility landscape,” he continued.