India’s largest two-wheeler manufacturer, Hero MotoCorp Ltd, on Thursday announced an additional investment of ₹275 crore in electric vehicle maker Euler Motors, reinforcing its push into the fast-growing electric mobility space.
The investment will be made in one or more tranches by April 2026 and will include a mix of primary and secondary transactions, the company said in an exchange filing. Following the proposed infusion, Hero MotoCorp’s stake in Euler Motors will rise to about 36% from 34.1% on a fully diluted basis.
“The primary investment would be made by HMCL in Series E compulsory convertible preference shares, pursuant to which HMCL’s stake would be approximately 36% on a fully diluted basis,” Hero MotoCorp said. “Additionally, within the aforementioned amount, HMCL may acquire shares from existing shareholders of Euler by way of secondary sale.”
Hero MotoCorp said the additional investment aligns with its strategy to strengthen and diversify its presence in emerging mobility segments.
“As a global automotive leader, Hero MotoCorp is driven by sustainability, innovation and customer-centric progress,” the company said. “As we strengthen and diversify our emerging mobility portfolio, HMCL intends to enhance its participation in a rapidly growing electric three- and four-wheeler market with this additional proposed investment in Euler Motors.”
Hero MotoCorp’s investment comes at a time when Euler Motors is looking to scale operations and improve financial performance. The electric vehicle maker has said it aims to double revenue in the current fiscal year and work towards achieving earnings before interest, tax, depreciation and amortisation (EBITDA) breakeven by the end of the decade.
Euler Motors designs, manufactures and sells electric three- and four-wheelers, primarily targeting the commercial mobility segment. The company currently has a presence in 64 cities across India. For the financial year ended March 31, 2025, Euler Motors reported a turnover of ₹191 crore.
India’s electric commercial vehicle market has been growing, driven by demand from last-mile delivery and urban transport operators, with established automakers and startups increasing investments to gain share. Hero MotoCorp is also the largest shareholder in Ather Energy, a major electric two-wheeler company.
Separately, Hero MotoCorp also approved investments of up to ₹3.25 crore and ₹4.67 crore in solar power wheeling projects at its Haridwar and Neemrana manufacturing plants, respectively.
For these projects, Hero MotoCorp will enter into arrangements with CleanMax Enviro Energy Solutions Ltd to set up special purpose vehicles under the group captive mechanism.
“The objective of the investment is to expand the renewable footprint under the group captive mechanism through the company’s equity investment in the proposed SPVs to be established by CleanMax,” Hero MotoCorp said.
The twin investments underscore the company’s parallel focus on scaling its electric mobility portfolio while reducing its carbon footprint across manufacturing operations.