Hero MotoCorp, the global leader in the production of motorcycles and scooters, has made a strategic foray into the electric commercial vehicle (ECV) segment with a ₹525 crore investment in Euler Motors. The move is a landmark moment in Hero’s path toward sustainable mobility and makes the company a serious player in India’s fast-expanding EV ecosystem.

A Strategic Stake in India’s EV Future
On March 20, 2025, the board of Hero MotoCorp approved an investment of up to ₹525 crore in New Delhi-based Euler Motors. The transaction will be executed in a combination of primary and secondary investments, spread across one or more tranches. Once completed, Hero MotoCorp will hold approximately 32.5% stake in Euler Motors on a fully diluted basis, making it a key shareholder in the electric vehicle startup.

This investment is part of Hero’s broader strategy to diversify its electric portfolio, which has so far concentrated only on the two-wheeler segment through its own EV brand, Vida. With this investment in Euler Motors, Hero is expanding its presence in the electric three- and four-wheeler commercial vehicle segment, an area that is seeing accelerated adoption on account of escalating fuel prices, tightening environmental regulations, and government incentives.

Euler Motors: An Emerging EV Star
Established in 2015, Euler Motors has established a notable presence in the electric vehicle space by specialising in designing, developing, and deploying electric three-wheelers and light commercial vehicles. It is based out of New Delhi and currently has operations in more than 30 cities in India, with targets being logistics players, last-mile delivery companies, and e-commerce operators through its EV products.

Euler’s growth path has been remarkable. The company registered a revenue increase from ₹25 crore in FY22 to ₹172 crore in FY24, demonstrating a definite demand for its products and a solid operating model. Its lead product, the Euler HiLoad EV, is favored in intra-city logistics because of its payload capability, low operational expenses, and excellent battery life.

Hero MotoCorp’s capital infusion will be expected to enable Euler Motors to increase its production, reinforce R&D, build more service infrastructure, and increase the size of its product portfolio to address India’s increasing demand for commercial EVs.

Paving the Way For Sustainability Through Innovation
Speaking about the investment, Hero MotoCorp released a statement highlighting the strategic significance of the action:
“Our strategic investment in Euler is a bold move toward bringing our vision of ‘Be the Future of Mobility’ to life. This investment is a testament to our dedication to driving growth through both organic and external means and reflects the strength of teamwork and resilience in an increasingly dynamic market.”

The investment is a signal of Hero’s desire to get more deeply engaged in India’s current EV movement, particularly within the high-growth B2B logistics and delivery segment. Commercial vehicles produce a large part of India’s transport-related greenhouse gas emissions, and shifting this segment to electric solutions is important for achieving India’s national climate objectives.

Hero’s association may also avail Euler access to improved distribution networks, technical backup, and efficient manufacturing practices at lower costs, further cementing its position in the market.

EV Market Landscape and Growth Potential
India’s EV industry is at the stage of transition, with government-supported policies like FAME II and state subsidies promoting uptake. While electric two-wheelers have registered large-scale acceptability, electric three-wheelers are proving to be the next frontier of growth, especially in last-mile delivery and urban freight segments.

Based on industry estimates, the Indian electric three-wheeler market is likely to grow at a compound annual growth rate (CAGR) of more than 15% over the next five years. With the likes of Mahindra Electric, Piaggio, and Omega Seiki Mobility already in the fray, the entry of Hero MotoCorp into the picture—via Euler Motors—increases the competitive game.

What Lies Ahead
This investment makes Hero MotoCorp’s strategic vision convergent with the future needs of Indian mobility. It also aligns with the government’s overall drive for electrification of transportation for less reliance on fossil fuels and diminishing urban air pollution.

For Euler Motors, the financing will not only facilitate capacity augmentation and product diversification but also assist it in penetrating new customer segments, such as Tier II and Tier III cities, where electric commercial vehicles are finding increasing acceptance because of reduced maintenance and fuel expenses.

In the future, the Hero-Euler collaboration may also look into collaborative innovation in finance models, connected vehicle solutions, and battery technology to make EVs more affordable for small business owners and fleet operators.