Euler Motors posted a modest 9.7% growth in FY26, reaching around 3,538 units sold as of February 9, up from 3,227 units in FY25. By contrast, industry giants have surged ahead, with Bajaj Auto’s e3W sales rising 40% to over 70,000 units, while TVS Motor reported a nearly 12-fold jump to around 23,000 units.
Analysts note that Euler’s growth in the e3W market has been constrained by its limited presence in the passenger carrier segment, a shift in focus toward four-wheeler trucks, weak brand recognition, and intense competition from established players like Bajaj and TVS.
Avik Chattopadhyay, auto expert and Chairperson of XLRI’s Centre for Automobile Design & Management (XADM), said startups often gain ground when legacy players are slow to adapt, as seen in the e2W space with Ather and Ola. In the e3W segment, however, established players like Bajaj and TVS are already scaled up, making it tough for newcomers like Euler to grow rapidly.
“Euler still lacks strong brand recognition and breakthrough technology to draw customers,” he added. Chattopadhyay sees Hero’s investment as experimental, focused on testing products and building e3W capabilities without diluting its core brand.”
After investing ₹510 crore in FY25, Hero earlier this month approved an additional ₹275 crore investment in Euler, raising its stake to 36%
Network Gap
Another sector expert noted that scaling in the 3W market requires a large dealer network, which Euler currently lacks. Bajaj, for instance, operates through more than 850 dealerships nationwide, while Euler has fewer than 100 showrooms across 64 cities. “In Delhi, there aren’t even half a dozen Euler showrooms, whereas legacy players have a presence in nearly every sub-district,” the expert said.
Arun Malhotra, industry expert and former MD of Nissan Motors, added that a presence in the passenger segment is essential for any player scale up in the E3W market.
Echoing Chattopadhyay, an industry executive said Hero’s investment in Euler appears more experimental than aimed at rapid scaling. Euler’s entry into the cargo four-wheeler segment, without leveraging the core 3W segment, exemplifies this approach.
Experimental Capital
Hero’s Chief Financial Officer Vivek Anand has previously described the 3W segment as a ₹17,000-crore market with EBITDA margins exceeding 20%, calling it a ‘large value pool’ with strong profit potential. However, following last year’s investment, Euler shifted its focus toward 4W cargo vehicles.
According to experts, Hero would need to launch a dedicated e3W brand or acquire Euler to scale effectively, as strong brand value is a key factor in customer preference.
This is not the first time Hero has backed a startup to enter a new segment. In the e2W space, the company invested in Ather but later launched its own e2W brand, Vida.
Relying solely on Euler’s current capabilities may limit Hero’s ability to capture significant market share, especially as competitors leverage established channels to expand rapidly.