Hero MotoCorp Raises Stake in Euler Motors

Hero MotoCorp Deepens Bet on Electric Mobility with ₹275-Crore Euler Investment

Hero MotoCorp Ltd, India’s largest two-wheeler manufacturer, has stepped up its commitment to electric mobility by announcing an additional investment of ₹275 crore in Euler Motors, a fast-growing electric commercial vehicle maker. The move reflects the company’s broader strategy to diversify beyond traditional internal combustion vehicles and strengthen its presence in emerging mobility segments.

The fresh capital infusion will be made in one or more tranches by April 2026 and will include a mix of primary and secondary transactions. Once completed, Hero MotoCorp’s stake in Euler Motors will rise to approximately 36% on a fully diluted basis, up from 34.1% currently.

Primary and Secondary Investment Structure

In an exchange filing, Hero MotoCorp clarified that a significant portion of the investment will be made through Series E compulsory convertible preference shares, which will directly increase its ownership in Euler Motors. Additionally, part of the ₹275-crore allocation may be used to acquire shares from existing shareholders via secondary transactions.

The company said this structured approach allows it to both support Euler’s capital needs while also consolidating its strategic position within the firm.

Strategic Push into Electric Commercial Vehicles

Hero MotoCorp framed the investment as a key part of its long-term sustainability and innovation agenda. The company stated that it is actively building a diversified emerging mobility portfolio and sees strong growth potential in India’s electric three- and four-wheeler market, particularly in commercial applications.

Euler Motors primarily serves the last-mile logistics and urban transport segment, designing and manufacturing electric three-wheelers and small four-wheelers aimed at fleet operators and delivery businesses. The company currently operates in 64 Indian cities, signalling a rapidly expanding footprint.

Euler’s Growth and Profitability Roadmap

The additional funding comes at a crucial time for Euler Motors, which is in the midst of scaling operations. The company has publicly stated its ambition to double its revenue in the current fiscal year and work towards achieving EBITDA breakeven by the end of the decade.

For the financial year ended March 31, 2025, Euler Motors reported a turnover of ₹191 crore, highlighting both its growth trajectory and the need for further capital to expand production, technology, and market reach.

Rising Momentum in India’s Electric CV Market

India’s electric commercial vehicle segment has been gaining traction, driven by rising demand from e-commerce, quick-commerce, and urban delivery operators seeking lower operating costs and cleaner fleets. Established automakers and startups alike have been increasing investments to capture this opportunity.

Hero MotoCorp is already a major player in the EV space through its significant stake in Ather Energy, one of India’s leading electric two-wheeler brands. The deeper investment in Euler Motors signals a parallel focus on electric commercial mobility.

Parallel Push on Renewable Energy

Alongside the Euler investment, Hero MotoCorp has also approved capital commitments of up to ₹3.25 crore and ₹4.67 crore for solar power wheeling projects at its Haridwar and Neemrana manufacturing facilities, respectively.

For these projects, the company will partner with CleanMax Enviro Energy Solutions Ltd to set up special purpose vehicles under the group captive mechanism, allowing Hero MotoCorp to procure renewable energy through equity participation.

Twin Strategy: EV Growth and Lower Emissions

Together, the two announcements underscore Hero MotoCorp’s dual strategy: aggressively expanding its electric mobility portfolio while simultaneously reducing the carbon footprint of its manufacturing operations.

As India’s mobility transition accelerates, Hero MotoCorp’s latest investments signal that the company is positioning itself not just as a leader in two-wheelers, but as a broader player in the country’s evolving clean mobility ecosystem.