After a six-fold jump in the value of its investment in Ather Energy over the past decade, the country's largest two-wheeler maker Hero MotoCorp is seeing its latest electric commercial vehicle bet, Euler Motors, scale rapidly, with the electric commercial vehicle maker doubling sales and revenue while adding manufacturing capacity since the company's entry on its cap table.
Euler's founder Saurav Kumar told Mint that the legacy two-wheeler maker has supported the company in scaling its network and provided inputs as sales have accelerated over the past six months. Hero chairman Pawan Munjal inaugurated a new production line for electric four-wheeler commercial vehicles at Euler Motors factory in Palwal, Haryana, on Thursday.
Filings reviewed by Mint show Hero has invested ₹720 crore in Euler, making it the largest shareholder with a 34% stake at the end of fiscal year, mirroring its 29.2% holding in Ather Energy post its May 2025 listing. Hero first invested in the company in March 2025 which also marked its foray into the commercial three- and four-wheeler segments.
Beyond the capital infusion, Hero's real value has been strategic, access to executive-level industry perspective that helps Euler think through planning and decision-making, Kumar told Mint.
“If you look at the network presence, we've gone from almost 30-35 cities to like 112 cities. We've grown in 3 to 4x in terms of our touch points. In this Hero has helped us significantly,” Kumar explained, adding that Hero’s help came through asking some of its own network to take up Euler dealerships.
Since the entry of Hero with fresh capital into Euler Motors, the brand has seen a rapid jump in sales. Vahan portal data shows Euler's sales grew 87% to 6,528 units in fiscal 2026. It has already sold 5,318 units in the first four months of fiscal year 2027, prompting a capacity expansion.
Sales and revenue climb
The scale up is also reflected in the firm’s financials, with the latest numbers filed with the ministry of corporate affairs showing that revenue of the company jumped 101% to ₹433 crore in fiscal 2026 on the back of growing sales. Losses widened to ₹315 crore from ₹261 crore.
Kumar said that the company is already producing its battery packs, battery management systems and vehicle control units in house which gives it better control of its unit economics.
- Hero holds a 34% stake in Euler, valued at ₹720 crore as of FY26.
- Euler's FY26 revenue jumped 101% to ₹433 crore, losses also widened.
- Euler's dealer network expanded from 30-35 cities to 112 cities after Hero’s entry.
- Hero repeats Ather playbook: back new-age player before formal market entry.
- Rivals Bajaj, TVS already compete directly in electric three-wheeler segment today.
“It takes a bit of a journey, but with a certain amount of scale and the control we have over our vehicle's cost efficiency, it's possible,” he said.
Euler’s filings also showed that Hero’s chief business officer for the emerging mobility business unit, Kausalya Nandakumar, joined its board of directors in October 2025. Nandakumar oversees Hero MotoCorp's electric vehicle business. The company was founded by Saurav Kumar in 2018 and counts investors like Lightrock and British International Investment (BII).
“India’s commercial mobility sector is at an important inflection point, with electrification gaining momentum on the back of supportive government policies, improving total-cost economics and the growing demand for sustainable last-mile mobility,” Munjal said on Thursday.
While Hero's rivals Bajaj and TVS are directly present in the electric three-wheeler segment, the Delhi-based company appears to be taking a similar approach to its electric two-wheeler strategy, backing a new-age player first before considering making a formal entry of its own.
Hero has cumulatively invested around ₹2,600 crore in Ather, including its latest ₹960 crore infusion through the issuance of preference shares. The company’s 29.2% stake is currently valued at around ₹16,000 crore.
Hero's two-step playbook
Hero’s strategy is working well for itself, given the scale of the firm, according to analysts tracking two-wheeler companies.
“Hero has a well-oiled cash-generating machinery with decades of experience in the internal combustion engine industry. For it to move towards electrification is a slow process. The company has chosen to use its cash to back some new-age players, which worked very well in the case of Ather,” Deepesh Rathore, founder and head of research at InsightEV, an auto consultancy, said.
“Whether it will work in Euler is something only time will tell, but it has given Hero a play in the growing electric commercial vehicle market,” he added.
Investors have also started backing the last-mile mobility segment. Mahindra Last Mile Mobility raised ₹322 crore from Lightrock, the International Finance Corporation, and the India-Japan Fund in July, making it a unicorn as its valuation crossed the $1 billion mark.
“The last-mile segment specifically is well-suited to this (electric) shift, since range anxiety, a key issue elsewhere, simply isn't an issue for these use cases,” Samir Abhyankar, partner and head of India at Lightrock, told Mint earlier this month on the rationale for backing this segment. He said the segment's economics reinforce this shift as adoption is driven by livelihood needs rather than consumer sentiment, since these vehicles run long hours on predictable routes.