Hero MotoCorp, India’s leading two-wheeler manufacturer, made a bold strategic move by announcing its entry into the electric three-wheeler segment through a significant investment in Euler Motors Private Limited. The company’s board approved an investment of ₹525 crore in multiple tranches, signaling its strong intent to diversify its product portfolio and tap into the fast-growing electric vehicle (EV) market.
Following the announcement, Hero MotoCorp’s shares surged over 3 percent during Friday’s trading session. The stock rose to an intraday high of ₹3,711.9 per share, marking a 3.1 percent gain. It later settled at ₹3,695.9, still up by 2.7 percent, outperforming the Nifty 50, which climbed 0.52 percent at that time. This marks the second consecutive day of gains for Hero MotoCorp’s stock, offering some relief after a nearly 11 percent decline in 2025. Despite the recent uptick, the stock continues to trade at a 15-month low, though it has recovered by nearly 7 percent from this month’s low of ₹3,466.
A Strategic Leap into the EV Three-Wheeler Segment
Hero MotoCorp’s latest investment reflects a decisive shift toward electric mobility and product diversification. With a focus on expanding into new mobility solutions, the company aims to leverage its strengths in manufacturing, distribution, and brand value to enter the electric three-wheeler market. This segment is currently undergoing rapid transformation, with electric vehicles projected to account for 35 percent of three-wheeler sales in the near future.
The company chose Euler Motors, an electric vehicle manufacturer with operations in 30 cities across India, as its partner for this venture. Euler designs, manufactures, sells, and services electric three- and four-wheeler vehicles. Hero MotoCorp identified Euler as a strategic fit for its vision of sustainable mobility and long-term growth.
Pawan Munjal, executive chairman of Hero MotoCorp, emphasized the significance of this investment. “As we strengthen and diversify our emerging mobility portfolio, this strategic 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,” he stated.
A Long-Term Vision Backed by Financial Commitment
Hero MotoCorp will complete the ₹525 crore investment in tranches by April 30, 2025. The investment marks one of the company’s biggest financial commitments toward electric mobility to date. This step not only strengthens Hero’s electric vehicle strategy but also supports its long-term growth ambitions.
Euler Motors, although a relatively young player, has demonstrated strong potential. The company reported a total turnover of ₹172 crore for the financial year ending March 31, 2024. With Hero’s backing, Euler now gains access to capital, strategic guidance, and operational expertise, which could significantly boost its scale and market presence.
By investing in Euler, Hero MotoCorp will tap into an entirely new customer base and business model. The commercial EV segment, especially electric three-wheelers, is gaining traction among fleet operators, last-mile delivery services, and small businesses. The lower running cost of EVs, combined with growing awareness around sustainability, continues to drive this demand.
Performance Snapshot and Market Sentiment
Despite this strategic announcement, Hero MotoCorp’s stock remains down 10.88 percent for the year. Investors have responded cautiously to the company’s financial performance, especially given its sluggish growth in core segments. For the quarter ending December 31, Hero’s motorcycle and scooter sales grew by just 0.3 percent—the slowest pace since Q2 of FY23.
However, the company managed to post a 12 percent increase in net profit, reaching ₹1,203 crore in the same quarter. The uptick in profit came from improved cost efficiency and higher realization per vehicle. Hero’s management remains confident in achieving double-digit revenue growth in the next fiscal year, supported by continued investments in new products and entry into untapped markets such as electric three-wheelers.
Investors appeared to react positively to the news of Hero’s foray into a fresh and promising segment. The share price jump indicates renewed optimism, as the market sees potential upside from this diversification strategy. Market experts believe the investment in Euler could help Hero counterbalance stagnation in its traditional two-wheeler business.
Strengthening the EV Portfolio and Future Readiness
Hero MotoCorp has steadily built its electric vehicle roadmap over the past few years. The company launched its first electric scooter under the Vida brand and continues to invest in EV R&D, charging infrastructure, and ecosystem partnerships. However, its EV presence remained limited to the two-wheeler segment—until now.
With this investment in Euler Motors, Hero MotoCorp enters a space where competition is heating up, but opportunities remain vast. Companies like Mahindra Electric, Piaggio, and various startups have started capturing market share in the electric three-wheeler segment. Hero’s late entry could prove advantageous, as it allows the company to learn from early movers and enter with a refined, well-capitalized approach.
Furthermore, as India ramps up its EV adoption goals, government policies, subsidies, and incentives will continue to play a critical role. Hero MotoCorp’s entry into the three-wheeler segment aligns with national objectives around reducing emissions and promoting clean transportation.
Broader Implications for the EV Ecosystem
Hero’s decision to invest in Euler also sends a strong message to the broader EV ecosystem. It reflects growing confidence among legacy automakers in the viability and scalability of electric mobility. As a market leader in the internal combustion engine (ICE) two-wheeler segment, Hero’s move into electric three-wheelers signals a significant shift in the industry narrative.
Startups like Euler benefit immensely from such partnerships. Beyond capital infusion, they gain credibility, distribution muscle, and the operational discipline needed to scale. Investors and policymakers often view such alliances as milestones in the journey toward mainstream EV adoption.
Hero MotoCorp also unlocks opportunities in adjacent sectors like battery technology, charging infrastructure, fleet services, and logistics. As the EV landscape evolves, companies that offer integrated solutions across the value chain will enjoy a significant competitive edge.
Conclusion: A Calculated Bet on the Future of Mobility
Hero MotoCorp’s ₹525 crore investment in Euler Motors marks more than a financial transaction—it represents a strategic pivot toward the future of mobility. As electric three-wheelers gain traction across urban and semi-urban India, Hero positions itself to capture a significant share of this booming market. The move aligns with its larger goals of sustainability, innovation, and long-term growth.
Although the company continues to face headwinds in its core business, it now embarks on a path that promises diversification, new revenue streams, and leadership in emerging mobility segments. The market has started acknowledging this shift, as seen in the positive stock movement following the announcement.
With execution discipline, customer-centric product offerings, and continued investments, Hero MotoCorp could redefine its identity—from a legacy two-wheeler giant to a forward-looking mobility solutions provider. This foray into electric three-wheelers may just be the beginning of a broader transformation.
