An investment of up to Rs. 525 crore was announced by Hero MotoCorp Limited in Euler Motors Private Limited, a significant participant in the electric three- and four-wheeler market.
Hero MotoCorp’s foray into the rapidly expanding electric three-wheeler market, where electric cars are expected to account for 35% of total sales in the near future, would be made possible by the investment in Euler Motors, which will be carried out in one or more tranches.
Primary and secondary transactions will make up the Rs. 525 crore investment. Hero MotoCorp would purchase equity shares and Series D Compulsory Convertible Preference Shares as the main investment, giving it a fully diluted holding of about 32.5% in Euler Motors. Hero MotoCorp may also use secondary sales to buy shares from current Euler shareholders for the same investment amount. It is anticipated that the cash sale will be finalized by April 30, 2025.
In addition to its well-established presence in the three-wheeler market, Euler Motors just added its first electric commercial four-wheeler to its portfolio. Hero MotoCorp’s expertise in sustainable mobility solutions is further cemented with this acquisition, which gives it a solid presence in a quickly changing market category.
Hero has partnered with Zero Motorcycles for electric technology, introduced its own Vida sub-brand, and made a sizable investment in Ather Energy.
These strategic initiatives and partner ventures demonstrate Hero’s awareness of its shortcomings in rapidly acquiring new skills. Although this strategy lowers the risks associated with direct investments, it has led to a slower rate of diversification than competitors like Bajaj and TVS, who have more successfully broadened their portfolios beyond commuter motorcycles.