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.<\/p>\n
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.<\/p>\n
Filings reviewed by Mint show Hero has invested \u20b9720 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.<\/p>\n
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.<\/p>\n
\u201cIf 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,\u201d Kumar explained, adding that Hero\u2019s help came through asking some of its own network to take up Euler dealerships.<\/p>\n
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.<\/p>\n
The scale up is also reflected in the firm\u2019s financials, with the latest numbers filed with the ministry of corporate affairs showing that revenue of the company jumped 101% to \u20b9433 crore in fiscal 2026 on the back of growing sales. Losses widened to \u20b9315 crore from \u20b9261 crore.<\/p>\n
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.<\/p>\n
\u201cIt 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,\u201d he said.<\/p>\n
Euler\u2019s filings also showed that Hero\u2019s 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).<\/p>\n
\u201cIndia\u2019s 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,\u201d Munjal said on Thursday.<\/p>\n
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.<\/p>\n
Hero has cumulatively invested around \u20b92,600 crore in Ather, including its latest \u20b9960 crore infusion through the issuance of preference shares. The company\u2019s 29.2% stake is currently valued at around \u20b916,000 crore.<\/p>\n
Hero\u2019s strategy is working well for itself, given the scale of the firm, according to analysts tracking two-wheeler companies.<\/p>\n
\u201cHero 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,\u201d Deepesh Rathore, founder and head of research at InsightEV, an auto consultancy, said.<\/p>\n