Hero MotoCorp expands into electric three-wheeler segment, acquires 32.5% stake in Euler Motors

New Delhi: Hero MotoCorp on Thursday announced that it has forayed into the electric three-wheeler segment by acquiring a 32.5% stake in Euler Motors for Rs 525 crore.

"Our strategic investment in Euler is a bold step towards realising our vision to be the future of mobility," said  Pawan Munjal, Executive Chairman, Hero MotoCorp in a regulatory filing.

This investment reinforces the company's commitment to accelerated growth through organic and inorganic expansion while highlighting the power of collaboration and adaptability in an ever-evolving market, he added.

"As we strengthen and diversify our presence in the emerging mobility landscape, this investment allows the company to venture into a rapidly growing electric three and four-wheeler market while unlocking adjacent business opportunities," Munjal said.

The company said its board has approved a strategic investment of up to Rs 525 crore, in one or more tranches, in Euler Motors.

This investment will provide Hero MotoCorp with a strong foothold in the fast-growing electric three-wheeler market, where EVs are projected to account for 35 per cent of total sales in the near future, it added.

Euler Motors is available in 30 cities in India and is engaged in the designing, manufacturing and sale and service of electric three-wheelers.

The company recently launched its first electric commercial four-wheeler.

Euler's turnover for the financial year ended March 31, 2024, stood at Rs 172 crore. Hero MotoCorp said its stake in Euler would be around 32.5% on a fully diluted basis.

Additionally, within the aforementioned amount, HMCL may acquire shares from existing shareholders of Euler by way of secondary sale, it added.

Hero MotoCorp shares on Thursday ended 1.73% up at Rs 3,596.90 apiece on BSE. PTI MSS BAL BAL.