Hero-backed Euler Motors eyes profitability by 2029 after aggressive expansion

The company, which makes electric three- and four-wheeler commercial vehicles, is planning an aggressive expansion of its sales and distribution network to 80-100 cities in the next 12-15 months, up from 40 cities currently.

This came after the Delhi-based company closed a ₹638 crore Series D funding round led by Hero MotoCorp, which also marked the entry of the country’s largest two-wheeler player in the electric three-wheeler segment.

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“The fundraise will help us in solidifying our presence across the country and invest in better products for our customers,” Saurav Kumar, founder and chief executive at Euler Motors, told Mint. 

Hero announced in March 2025 that it is investing ₹525 crore in the start-up to acquire a 32.5% stake. Previously, Hero had also invested in Ather Energy Ltd. and currently holds about 30% of the listed entity. 

“Hero and Euler can create a lot of synergies together. But at this point, it is just an investment. We want to take some of their learnings and apply them to our own company,” Kumar said.

Other investors in the round included British International Investment (BII), the UK’s development finance institution. 

According to Tracxn, the founder held a 9.82% stake in the company before the conclusion of this funding round.

On the board

At present, the company, founded in 2018, has not clarified whether a member of Hero MotoCorp will join the board of Euler Motors. 

In FY2024, its losses stood at ₹226 crore, while revenue was recorded at ₹189 crore. The company has not yet filed its FY2025 results with the corporate affairs ministry. 

“Profitability and scale go hand in hand auto segment. It is still early in our journey, but profitability should come as we increase sales and improve gross margins,” Kumar noted.

Euler Motors sold about 3,226 electric three-wheelers in FY2025, largely catering to the commercial vehicle segment. Competitors in the space include Bajaj Auto Ltd, Mahindra and Mahindra Ltd, and Piaggio Group. 

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Its presence in the four-wheeler segment is still nascent and continues to get most of its revenue from the three-wheeler segment.

The country’s three-wheeler market is fragmented, with over 500 players. Euler has a single-digit market share in the overall market, which is led by Mahindra.

Speaking about the investment in Euler, Hero management mentioned in a post-results earnings call on 14 May that its investments in these start-ups are part of a long-term strategy as it looks to collaborate with these companies. 

The electric three-wheeler market has been growing rapidly, with nearly 50% penetration in the overall market. In the financial year 2025, there were about 699,073 electric three-wheeler sales in the country. 

“The expansion of big players in the segment is good as it will help grow the pie. We had to compete with CNG players and now have to compete with their variants in the electric space, so it’s not a new thing for us,” Kumar said. 

While Euler expands its bid, competition in the electric three-wheeler space is also expected to tighten. Bajaj Auto has already announced several new products in the segment and is looking to introduce more products in both the commercial and passenger segments.

Also read: ‘India to have 123 million EVs on the road by 2032 under best-case scenario’

“There are going to be a lot better products. The electric three-wheeler market will consolidate in favour of the large players. We were late entrants as we took time to develop a product customers would appreciate,” Samardeep Subandh, president-Intracity Business Unit at Bajaj Auto, said in an interview in March.