Hero-backed Euler scales to 112 cities as electric CV sales accelerate

Euler Motors is widening its electric commercial-vehicle retail and service footprint, aided by Hero MotoCorp’s ₹720 crore investment and dealership support. The company reported 87% sales growth to 6,528 units and 101% revenue growth to ₹433 crore in FY2026.

— Source published Fri, 21 Aug, 2026, 06:00 IST · First seen Fri, 21 Aug, 2026, 06:10 IST · Source Mint

What happened

Hero MotoCorp-backed Euler Motors is rapidly scaling electric commercial vehicles, expanding production in Palwal and its network to 112 cities. Hero’s ₹720

Key facts

  • Hero MotoCorp invested ₹720 crore in Euler Motors for a 34% stake
  • Euler sales rose 87% to 6,528 units in FY2026
  • Euler sold 5,318 units in the first four months of FY2027
  • Euler revenue grew 101% to ₹433 crore in FY2026
  • Euler loss widened to ₹315 crore from ₹261 crore
  • Euler expanded from 30-35 cities to 112 cities
  • Hero holds 29.2% in Ather Energy, valued around ₹16,000 crore
  • Hero has cumulatively invested about ₹2,600 crore in Ather
  • Mahindra Last Mile Mobility raised ₹322 crore

Why this matters

Hero’s ₹720 crore investment and dealership support show how strategic OEM partnerships can accelerate EV market access, making Euler a more consequential ecosystem partner or competitive target.

What to watch

  • Quarterly unit sales growth versus the 87% FY2026 baseline and evidence of sustained demand after launch-period incentives.
  • Revenue per vehicle, gross margin, warranty provisions and cash burn as the 112-city footprint matures.
  • Number of active dealers and service points, parts fill rate, turnaround time and vehicle uptime in newly entered cities.
  • Financing approval rates, fleet leasing penetration and any Hero-linked captive-finance or dealer-finance program.
  • Large fleet purchase orders, repeat-order rates and customer concentration among logistics and e-commerce operators.
  • Pricing, warranty and financing actions from Tata Motors, Mahindra, Piaggio, Altigreen and other electric CV competitors.
  • Policy changes affecting EV subsidies, commercial-vehicle registration, battery safety requirements or charging access.
  • Prioritize high-utilization logistics, e-commerce, FMCG and last-mile fleet corridors within the expanded city network rather than broad low-volume coverage.
  • Use Hero MotoCorp dealer relationships to accelerate service-bay rollout, technician training, spare-parts availability and roadside-assistance standards.
  • Pair vehicle sales with fleet financing, leasing, battery warranty and uptime-guarantee products to lower upfront-cost and reliability barriers.
  • Track city-level dealer productivity and service turnaround; consolidate or redesign weak territories before fixed costs scale further.
  • Secure institutional fleet contracts and charging or depot partnerships to convert the expanded network into recurring service, parts and replacement demand.