Hero MotoCorp's Bold Leap into Electric Mobility with Euler Motors Investment
March 21, 2025, 3:35 pm
Location: India, Karnataka, Bangalore
Employees: 1001-5000
Founded date: 2013
Total raised: $932.58M
Location: India, Karnataka, Bengaluru
Employees: 51-200
Founded date: 2018
Total raised: $164.81M
In a world racing towards sustainability, Hero MotoCorp has made a significant move. The two-wheeler giant is investing INR 525 crore (around USD 60 million) in Euler Motors, a Delhi-based electric three-wheeler manufacturer. This investment, approved by Hero's Board of Directors, will grant the company a 32.5% stake in Euler on a fully diluted basis.
This strategic decision is more than just numbers. It’s a statement. Hero MotoCorp is not merely a player in the automotive industry; it aims to be a leader in the electric vehicle (EV) revolution. The investment will be executed in multiple tranches, allowing Hero to navigate the evolving landscape of electric mobility with agility.
Euler Motors, founded in 2018 by Saurav Kumar, has quickly carved a niche in the electric commercial vehicle sector. Its flagship model, the HiLoad EV, is touted as the most powerful electric cargo three-wheeler, boasting a range of 170 kilometers. This is not just a vehicle; it’s a glimpse into the future of urban logistics. The company has also ventured into the electric four-wheeler market, showcasing its ambition to diversify and innovate.
The timing of this investment is crucial. The Indian EV market is on the brink of explosive growth. Projections suggest that electric vehicles could account for 35% of total sales in the near future. Hero MotoCorp is positioning itself to ride this wave. By investing in Euler, it strengthens its foothold in the burgeoning electric three-wheeler market, a segment that is gaining traction as businesses seek sustainable solutions for transportation.
Euler Motors has demonstrated impressive growth. Its revenue surged from INR 49 crore in FY 2022-23 to INR 172 crore in FY 2023-24. This rapid ascent is a testament to the increasing demand for electric commercial vehicles. The company currently operates in over 30 cities, showcasing its expanding footprint in the Indian market.
Hero MotoCorp's investment is not an isolated event. It follows a series of strategic moves in the EV sector. The company has previously invested in Ather Energy, another electric scooter manufacturer, where it holds a significant stake. This pattern of investment reflects Hero's commitment to shaping the future of mobility. The company is not just adapting; it is actively participating in the transformation of the automotive landscape.
The EV sector is attracting attention from various quarters. Euler Motors has garnered support from notable investors, including the UK's British International Investment and Indian venture capital firm Blume Ventures. This backing underscores the confidence in Euler's business model and growth potential. The recent funding rounds, including a USD 24 million extended Series C round, have positioned Euler as a formidable player in the electric vehicle space.
Hero MotoCorp's investment strategy is multifaceted. Apart from acquiring a stake in Euler, the company may also purchase shares from existing shareholders through a secondary sale. This approach allows Hero to consolidate its position and influence within the company, ensuring that it can steer the direction of its investment effectively.
The EV market is not without challenges. Infrastructure, consumer acceptance, and regulatory frameworks are critical factors that will shape the future of electric mobility. However, Hero MotoCorp's proactive stance indicates a readiness to tackle these challenges head-on. The company is not just betting on the technology; it is investing in a vision of a cleaner, greener future.
The implications of this investment extend beyond Hero MotoCorp and Euler Motors. It signals a shift in the automotive industry towards electric mobility. As traditional manufacturers embrace EV technology, the landscape is changing. Competition will intensify, but so will innovation. This investment could catalyze further advancements in electric vehicle technology, leading to better performance, lower costs, and increased accessibility for consumers.
In conclusion, Hero MotoCorp's investment in Euler Motors is a strategic maneuver in the rapidly evolving electric vehicle market. It reflects a commitment to innovation and sustainability. As the company strengthens its position in the electric three-wheeler segment, it also sets the stage for future growth. The road ahead is filled with potential, and Hero MotoCorp is steering towards a future where electric mobility is not just an option but a norm. The journey has just begun, and the destination is a cleaner, more sustainable world.
This strategic decision is more than just numbers. It’s a statement. Hero MotoCorp is not merely a player in the automotive industry; it aims to be a leader in the electric vehicle (EV) revolution. The investment will be executed in multiple tranches, allowing Hero to navigate the evolving landscape of electric mobility with agility.
Euler Motors, founded in 2018 by Saurav Kumar, has quickly carved a niche in the electric commercial vehicle sector. Its flagship model, the HiLoad EV, is touted as the most powerful electric cargo three-wheeler, boasting a range of 170 kilometers. This is not just a vehicle; it’s a glimpse into the future of urban logistics. The company has also ventured into the electric four-wheeler market, showcasing its ambition to diversify and innovate.
The timing of this investment is crucial. The Indian EV market is on the brink of explosive growth. Projections suggest that electric vehicles could account for 35% of total sales in the near future. Hero MotoCorp is positioning itself to ride this wave. By investing in Euler, it strengthens its foothold in the burgeoning electric three-wheeler market, a segment that is gaining traction as businesses seek sustainable solutions for transportation.
Euler Motors has demonstrated impressive growth. Its revenue surged from INR 49 crore in FY 2022-23 to INR 172 crore in FY 2023-24. This rapid ascent is a testament to the increasing demand for electric commercial vehicles. The company currently operates in over 30 cities, showcasing its expanding footprint in the Indian market.
Hero MotoCorp's investment is not an isolated event. It follows a series of strategic moves in the EV sector. The company has previously invested in Ather Energy, another electric scooter manufacturer, where it holds a significant stake. This pattern of investment reflects Hero's commitment to shaping the future of mobility. The company is not just adapting; it is actively participating in the transformation of the automotive landscape.
The EV sector is attracting attention from various quarters. Euler Motors has garnered support from notable investors, including the UK's British International Investment and Indian venture capital firm Blume Ventures. This backing underscores the confidence in Euler's business model and growth potential. The recent funding rounds, including a USD 24 million extended Series C round, have positioned Euler as a formidable player in the electric vehicle space.
Hero MotoCorp's investment strategy is multifaceted. Apart from acquiring a stake in Euler, the company may also purchase shares from existing shareholders through a secondary sale. This approach allows Hero to consolidate its position and influence within the company, ensuring that it can steer the direction of its investment effectively.
The EV market is not without challenges. Infrastructure, consumer acceptance, and regulatory frameworks are critical factors that will shape the future of electric mobility. However, Hero MotoCorp's proactive stance indicates a readiness to tackle these challenges head-on. The company is not just betting on the technology; it is investing in a vision of a cleaner, greener future.
The implications of this investment extend beyond Hero MotoCorp and Euler Motors. It signals a shift in the automotive industry towards electric mobility. As traditional manufacturers embrace EV technology, the landscape is changing. Competition will intensify, but so will innovation. This investment could catalyze further advancements in electric vehicle technology, leading to better performance, lower costs, and increased accessibility for consumers.
In conclusion, Hero MotoCorp's investment in Euler Motors is a strategic maneuver in the rapidly evolving electric vehicle market. It reflects a commitment to innovation and sustainability. As the company strengthens its position in the electric three-wheeler segment, it also sets the stage for future growth. The road ahead is filled with potential, and Hero MotoCorp is steering towards a future where electric mobility is not just an option but a norm. The journey has just begun, and the destination is a cleaner, more sustainable world.