Hero MotoCorp to invest Rs 525 crore in Euler Motors, forays into e-three wheeler space

The company's board has approved a strategic investment of up to Rs. 525 crore (in one or more tranches), in Euler Motors Private Limited.

Hero MotoCorp on Thursday said that it will make a strategic investment of upto Rs 525 crore (in one or more tranches), in Euler Motors, the company informed in a stock exchange filing. The company's board has approved a strategic investment of up to Rs 525 crore (in one or more tranches), in Euler Motors Private Limited. Hero MotoCorp  said it has forayed into the electric three-wheeler segment by acquiring a 32.5 per cent stake in Euler Motors.

Additionally, within the aforementioned amount, HMCL may acquire shares from existing shareholders of Euler by way of secondary sale, it added.

"This investment will provide Hero MotoCorp with a strong foothold in the fast-growing electric three-wheeler market, where EVs are projected to account for 35% of total sales in the near future.," the company said in a sttaement.

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.”

They recently launched their first electric commercial four-wheeler.

Euler's turnover for the financial year ended March 31, 2024, stood at Rs 172 crore. Hero MotoCorp said its stake in Euler would be around 32.5 per cent on a fully diluted basis.

Additionally, within the aforementioned amount, HMCL may acquire shares from existing shareholders of Euler by way of secondary sale, it added. Hero MotoCorp shares on Thursday ended 1.73 per cent up at Rs 3,596.90 apiece on BSE