Hero MotoCorp has announced an investment of ₹5.25 billion (~$61.06 million) in Euler Motors to expand into the electric three-wheeler market.

The investment will be made in one or more tranches for Hero MotoCorp to acquire a 32.5% stake on a fully diluted basis.

The investment will be made through a mix of primary and secondary acquisitions and is expected to be completed by April 30, 2025.

Euler Motors specializes in designing, manufacturing, selling, and servicing electric three- and four-wheeler electric vehicles. It operates in 30 cities across India and has recently introduced its first electric commercial four-wheeler.

The company reported a turnover of ₹1.72 billion in the financial year (FY) ending March 31, 2024, compared to ₹490 million (~$5.70 million) in FY 2023 and ₹250 million (~$2.91 million) in FY 2022.

Hero MotoCorp has emphasized that this acquisition aligns with its long-term vision of sustainable mobility. The company aims to expand its presence in the electric three-wheeler market, which is projected to account for 35% of total sales soon.

The investment will be made entirely in cash, and no governmental or regulatory approvals are required for the transaction. The company’s primary investment will be in equity shares and Series D Compulsory Convertible Preference Shares of Euler Motors. Additionally, within the allocated ₹5.25 billion (~$61.06 million), Hero MotoCorp may acquire additional shares from existing shareholders through a secondary sale.

Electric vehicle (EV) sales reached a record 1.95 million units in 2024, an over 27% growth year-over-year against the 1.53 million units sold in 2023. Electric two-wheelers accounted for nearly 59% (1.15 million) of total EVs sold, with Hero MotoCorp accounting for 43,696 electric two-wheelers.

In June 2024, the Bureau of Indian Standards unveiled two standards, IS 18590: 2024 and IS 18606: 2024, aiming to enhance the safety of EVs across various categories. These regulations, targeting the EV powertrain, seek to ensure stringent safety measures and battery performance criteria.