Hero Motocorp To Invest ₹275 Crore More In Euler Motors, Extends EV Bet

Hero MotoCorp will invest up to ₹275 crore in Euler Motors, taking its bet on the electric vehicle space beyond two-wheelers and deep into the cargo and fleet segment. The board cleared the investment on 5 February. The money will go into Euler Motors in one or more tranches through a mix of primary infusion into the company and secondary share purchase from existing shareholders. The transaction is planned for completion by 30 April 2026, according to the company’s filing.

Hero MotoCorp holds a 34.1% stake in Euler Motors on a fully diluted basis after an earlier outlay of about ₹510 crore. With the fresh Series E compulsorily convertible preference shares and any secondary purchase, the stake is expected to move to about 36%. Euler Motors designs, makes, sells and services electric three- and four-wheelers and operates in 64 cities. Its revenue rose from ₹49 crore in FY23 to ₹172 crore in FY24 and ₹191 crore in FY25.

The latest commitment follows the board approval in March 2025 for an investment of up to ₹525 crore in Euler Motors, which gave Hero MotoCorp an entry stake of 32.5% and marked its formal move into electric three-wheelers and small commercial four-wheelers. The focus is on last-mile delivery and urban cargo use, where EV adoption is rising because of running cost and emission norms.

For Hero MotoCorp, the Euler Motors investment expands its electric portfolio beyond scooters. The company already sells VIDA V1 and V2 electric scooters in India under the Vida brand and is working on a line-up of electric motorcycles, including models with technology from US-based Zero Motorcycles. Through the Euler link, Hero gains a presence in commercial EV fleets, access to customer data in logistics and e-commerce, and scope for shared sourcing, technology and charging solutions.

For Euler Motors, the extra capital from Hero MotoCorp supports expansion of production, new products and wider city coverage. A deeper tie-up with a high-volume two-wheeler maker can also help in areas such as local supply chains, vendor development and after-sales reach. The higher Hero shareholding may give Euler more stability in funding cycles and a longer planning horizon for its product roadmap.

The step builds on Hero MotoCorp’s other moves in the EV space. The company holds about 40% in Bengaluru-based Ather Energy through a series of investments, including a ₹124 crore share purchase in 2024. It has a joint venture with Taiwan’s Gogoro for battery swapping infrastructure and Gogoro-powered electric two-wheelers in India, and an approved equity investment of up to US$60 million in Zero Motorcycles for premium electric bikes.

Taken together, the Euler Motors deal, the stake in Ather Energy, the Vida in-house brand, the Gogoro battery swapping venture and the Zero Motorcycles collaboration show Hero MotoCorp using both partnerships and its own products to build a broad EV portfolio across scooters, motorcycles and commercial vehicles.