Hero's ₹720 cr bet on Euler Motors is already scaling

Hero's chief business officer for emerging mobility, Kausalya Nandakumar, joined Euler's board in October 2025. Euler, founded in 2018, also counts Lightrock and British International Investment as investors.

"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 Thursday.

While rivals Bajaj and TVS are directly in electric three-wheelers, Hero is taking a similar approach to its two-wheeler strategy: back a new-age player before a formal entry. Hero has invested around ₹2,600 crore in Ather Energy, where its 29.2% stake is valued at about ₹16,000 crore post the May 2025 listing.

Analysts see the strategy working. "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 of InsightEV, 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."

Investors are also backing last-mile mobility. Mahindra Last Mile Mobility raised ₹322 crore from Lightrock, the International Finance Corporation, and the India-Japan Fund in July, making it a unicorn.

"The last-mile segment specifically is well-suited to this shift, since range anxiety, a key issue elsewhere, simply isn't an issue for these use cases," Lightrock partner Samir Abhyankar told Mint. He said the segment's economics are driven by livelihood needs rather than consumer sentiment, since vehicles run long hours on predictable routes.