Hero-backed Euler Motors eyes profitability by 2029 after aggressive expansion | Company Business News
Summary
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 countrys largest two-wheeler player in the electric three-wheeler segment.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. It is still early in our journey, but profitability should come as we increase sales and improve gross margins, Kumar noted.Its presence in the four-wheeler segment is still nascent and continues to get most of its revenue from the three-wheeler segment.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 its 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.