10 February 2026
India’s largest two-wheeler maker Hero MotoCorp Ltd has doubled down on its electric mobility ambitions by approving a fresh investment of up to ₹275 crore in electric vehicle (EV) startup Euler Motors. This move deepens its footprint beyond electric scooters into the rapidly growing commercial EV segment. The board gave the green light to this additional funding at its meeting earlier this month, continuing a strategic partnership that started with Hero’s earlier equity injections into the Delhi-based EV specialist.
This new capital infusion is planned to be deployed in one or more tranches and expected to close by April 30, 2026, and Hero Motocorp’s stake in Euler is poised to rise from about 34.1% to approximately 36% on a fully diluted basis. The investment will be structured through a combination of primary infusion via Series E compulsory convertible preference shares and potential secondary share purchases from existing holders, signalling a deeper strategic involvement in the startup’s long-term growth plans.
Founded in 2018 by Saurav Kumar, Euler Motors has emerged as one of India’s leading manufacturers of electric three- and four-wheelers, focusing on last-mile delivery and intracity cargo transport. It currently operates in over 60 cities nationwide, and has seen rapid revenue growth — from the tens of crores just a few years ago to nearly ₹191 crore in FY25. Its electric vehicles are increasingly used by logistics providers and fleet operators seeking lower running costs and zero-emission solutions.
Riding the commercial EV wave
Hero MotoCorp’s fresh outlay in Euler isn’t an isolated bet — it’s part of a broader EV strategy that includes multiple electric investments and product initiatives. The company already sells its own electric scooters in India under the Vida brand, such as the VIDA V1 and V2, and has publicly discussed future e-motorcycle offerings leveraging technology partnerships. At the same time, Hero is a major investor in electric two-wheeler maker Ather Energy, holding a significant share and backing its expansion in urban EV markets.
By strengthening its position in electric commercial vehicles, Hero aims to capture a piece of a segment that analysts forecast will grow robustly as e-commerce, delivery fleets, and urban logistics increasingly electrify. Electric three-wheelers are already a mainstay of Indian city transport, and four-wheel cargo EVs promise substantial operating cost savings and emission reductions for businesses. Hero’s expanding equity in Euler gives it a front-row seat in this transformation.
Industry observers note that Hero’s renewed investment aligns with India’s broader EV adoption trends. With government incentives, stricter emission norms, and rising fuel costs all encouraging electrification, EV sales nationwide have seen double-digit growth. Companies like Euler, which target commercial fleet operations, are benefitting from this momentum as businesses seek sustainable, cost-efficient alternatives to diesel and petrol vehicles. Hero’s capital infusion accelerates Euler’s ability to scale production, expand its dealer network, enhance product development, and compete with other electric CV makers emerging in the Indian market.
A stake in the future of mobility
For Hero MotoCorp, this investment is more than just financial — it’s a strategic diversification away from its traditional combustion-engine legacy while reinforcing its brand as a future-oriented mobility company. With two-wheelers continuing to account for a large share of its business, expanding into commercial EVs helps broaden its portfolio and opens up new revenue streams. The electric CV market — especially three- and four-wheelers — is projected to be one of the fastest-growing segments in India’s EV ecosystem over the next decade.
The fresh ₹275 crore commitment also follows Hero’s earlier major investment of ₹525 crore in Euler in 2025, which marked its formal entry into the electric three-wheeler space. That funding round was part of Euler’s Series D raise, which totalled more than ₹638 crore and brought in other investors alongside Hero.
By steadily increasing its stake and backing Euler’s product and market expansion, Hero is positioning itself to benefit from the shift toward electric mobility not only in passenger scooters but also in commercial transport — a sector where electrification can have outsized economic and environmental impact. This renewed vote of confidence comes as Hero continues to adapt to changing mobility trends and capitalize on the growth opportunities reshaping the Indian auto industry.
