Hero MotoCorp forays into electric three-wheeler by acquiring stake in Euler Motors

New Delhi

The country’s largest two-wheeler manufacturer, Hero MotoCorp (HMCL), on Thursday said it was foraying into the electric three-wheeler market by acquiring a significant stake in Euler Motors with an investment of up to ₹525 crore.

The transaction will be done in one or more tranches consisting of a mix of primary and secondary investments. The primary investment would be made by Hero MotoCorp in equity shares and Series D Compulsory Convertible Preference Shares; pursuant to which HMCL’s stake would be around 32.5 per cent on a fully diluted basis, the company informed the stock exchanges.

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

“This investment reinforces our commitment to accelerated growth through both organic and inorganic expansion, while highlighting the power of collaboration and adaptability in an ever-evolving market,” Pawan Munjal, Executive Chairman, Hero MotoCorp, said.

The decision came after the board of directors of Hero MotoCorp met on Thursday, the company said.

“This investment allows Hero MotoCorp to venture into a rapidly-growing electric three and four-wheeler market, while unlocking adjacent business opportunities,” Munjal added.

He further said that this investment would 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.

Euler Motors has a presence in 30 cities in India and is engaged in the designing, manufacturing and sales and service of electric three-wheelers. It reently launched its first electric commercial four-wheeler. Euler’s turnover for the financial year ended March 31, 2024 was ₹172 crore.

The electric three-wheeler market sold 53,116 units in February, which was a growth of five per cent year-on-year as compared with 50,612 units in February 2024.

With this entry into the segment, Hero MotoCorp will now compete with the likes of Mahindra & Mahindra, Bajaj Auto, Piaggio Vehicles and Omega Seiki.

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