Hero MotoCorp acquires 32% stake in Euler Motors with ₹525 crore investment

The world’s largest two-wheeler maker by volumes, Hero MotoCorp has announced in a regulatory filing that the company has acquired a 32.5 per cent stake in electric three-wheeler maker Euler Motors. The company has invested ₹525 crore in Euler Motors on a fully diluted basis in one or more tranches. The move is Hero’s second major acquisition in an Indian electric vehicle manufacturer, having a sizeable stake in Bengaluru-based Ather Energy as well.

Hero MotoCorp Acquires Stake In Euler Motors

The move can be seen as Hero MotoCorp’s foray in the electric three-wheeler space. Euler Motors manufactures electric commercial vehicles and currently operates in over 30 cities across the country. The brand commenced operations in 2015 with electric three-wheelers and recently introduced its maiden electric four-wheeler for commercial applications.

Speaking about the acquisition, Dr Pawan Munjal, Executive Chairman - Hero MotoCorp, said, "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. As a global automotive leader, Hero MotoCorp is driven by sustainability, innovation and customer-centric progress. As we strengthen and diversify our presence in emerging mobility landscape, this investment allows Hero MotoCorp to venture into a rapidly growing electric three and four-wheeler market, while unlocking adjacent business opportunities and continuing to cement its leadership in the future of sustainable mobility."

With electric three-wheeler sales set to contribute to 35 per cent of total volumes in the coming years, Hero maybe looking to get a head start in this space. Notably, Euler Motors had a turnover of ₹172 crore in FY2024.

Heros Stake In Ather Energy

Hero was an early investor in Ather Energy and slowly increased its stake in the Bengaluru-based electric two-wheeler firm over the last decade. While Ather continues to operate independently, both Ather and Hero’s electric two-wheeler subsidiary Vida, work together on charging solutions and infrastructure.

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