Hero MotoCorp Limited has entered the electric three-wheeler segment by acquiring a 32.5% stake in Euler Motors Private Limited for ₹525 crores. The investment is part of the company's strategy to expand its presence in the evolving electric vehicle (EV) market.
Expansion into the electric three-wheeler market
Euler Motors is engaged in the designing, manufacturing, sales, and service of electric three-wheelers. The company has a presence in 30 cities across India. It recently introduced its first electric commercial four-wheeler, marking an expansion in its product offerings.
Financial performance of Hero MotoCorp
In the quarter that ended in December 2024, Hero MotoCorp reported a 12% rise in net profit to ₹1,203 crores from ₹1,073 crores in the same period the previous year. Revenue from operations increased by 5% to ₹10,210.78 crores compared to ₹9,723.73 crores in the previous year.
Following the announcement, Hero MotoCorp's stock on the National Stock Exchange (NSE) rose by 0.91%, reaching an intraday high of ₹3,630 on Friday, March 21, 2025.
Impact on share market investment
Investors looking for share market investment opportunities have been closely monitoring Hero MotoCorp's moves in the EV space. The acquisition of Euler Motors signals the company's commitment to innovation and market expansion, potentially influencing long-term share market investment trends.
Growth strategy and future outlook
Hero MotoCorp's investment in Euler Motors aligns with its broader strategy of accelerated growth through organic and inorganic expansion. The company aims to enhance its footprint in the EV segment while adapting to evolving market demands.
Stock performance amid broader market trends
Hero MotoCorp shares have declined nearly 14% year-to-date, in line with the overall movement of the NIFTY50 index. Despite the decline, the company remains focused on strategic investments that could impact share market investment patterns.
Hero MotoCorp's role in India's EV industry
The investment in Euler Motors is part of Hero MotoCorp's broader initiative to support India's transition to electric mobility. The company has been actively exploring new avenues to strengthen its market position in the EV sector.
At 12:00 PM on Friday, March 21, 2025, the shares of Hero MotoCorp were trading at ₹3,673.25 per share on the NSE.
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