NE BUSINESS BUREAU
CHENNAI, DEC 30
Royal Enfield’s parent company of Eicher Motors Ltd on Thursday announced that it will invest Euro 50 million (Rs 441.43 crore) and acquire a 10.35% equity stake in Spain-based electric motorcycle manufacturer Stark Future. The investment is aimed at forming a long-term partnership between the two firms for collaborative research and development in electric two-wheelers, technology sharing, technical licensing and manufacturing.
With this investment, Eicher Motors Ltd., will have a seat on Stark Future’s Board, and will explore further opportunities to collaborate in the space of electric mobility, said the company.
- The Board of Eicher Motors Ltd. (EML) has approved a strategic investment in, and plans for collaboration with European, high-performance electric motorcycle manufacturer Stark Future SL
- EML will make an initial equity investment of € 50 million, translating to close to 10.35% equity stake in Stark Future SL | EML will also nominate a Director to the Board of Stark Future
- This investment will pave the way for a long term partnership in collaborative research and development in electric motorcycles, technology sharing, technical licensing, and manufacturing
This investment has strategic significance for both Royal Enfield and for Stark Future, as both companies are keenly invested in creating innovative and sustainable solutions in global mobility. Stark Future recently launched its first high performance electric motocross bike, the Stark VARG, which received an exceptional response from global media, professional riders and dealers.
Speaking about Stark Future and this partnership, Eicher Motors Ltd Managing Director, Siddhartha Lal says, “We love the vision, passion and focus of the amazing team at Stark Future. Leisure motorcycles do not easily lend themselves to EV technology at this stage, due to challenges like the battery range, packaging, weight and cost. This has resulted in stunted growth of this segment till now. Stark Future has been able to understand and harness the potential of EV technology by dramatically outperforming ICE offerings, without compromising on range, weight, packaging and cost. They have created an absolutely astounding motocross motorcycle – the Stark VARG as their entry into the EV world. We believe that Stark Future has the highest potential for real breakout growth in the EV leisure space with this model, and the potential to use this strong base to extend into other contiguous segments and beyond”
At the helm of affairs at Royal Enfield, B Govindarajan, CEO of the company, feels this is a perfectly symbiotic partnership, and says, “We are very excited to closely collaborate with Stark Future who are as focused as we are on challenging norms, pushing the boundaries and building uniquely differentiated offerings for riders. In addition to the sheer potential of Stark Future, we see immense synergies in this partnership. While they are scaling up and planning their market entry soon, we will support Stark in the industrialisation process. While they are thought leaders in EV technology, particularly in light-weight components and innovative solutions, we at Royal Enfield will draw on these capabilities for developing our EV platforms and will also plan to share some EV platforms in the future”
Also speaking about this partnership, Stark Future Founder and CEO, Anton Wass says, “We aimed to challenge and inspire the motorcycle industry with the creation of the Stark VARG and by bringing our electric technology from the drawing board to reality. To now partner with one of the very first motorcycle brands in history, and be part of their journey towards sustainability is a huge inspiration for us at Stark. We have now worked closely with Sid, Govind and team for a few months, and have been deeply impressed by what they have created in the past 25 years, as well as the mindset and focus to continue to build and develop Royal Enfield into the future of sustainable motorcycling. With the Stark VARG we believe we have a launch model that will reset benchmarks, so to know that the bike’s technical basis will spread much further and filter into more machinery and products is another source of pride for us. It has been a short, intense and incredible journey for us so far but our link with Royal Enfield and what lies in store in the coming years are brilliant signs for the future.”
