Eicher Motors Ltd. (EML) approves strategic investment in Spanish electric motorcycle manufacturer Stark Future SL
Eicher Motors Ltd., parent company of Royal Enfield announced a strategic collaboration with Spain-based Stark Future SL. Eicher Motors Ltd. Board approved an initial equity investment of € 50 million. This entails close to 10.35% equity stake in Stark Future. Eicher Motors Ltd., will have a Director seat on Stark Future’s Board.
A development such as this becomes yet another space that’s getting superbly interesting. Royal Enfield’s reputation revolves around the mid-segment. And this collaboration will explore opportunities in electric mobility. Both Royal Enfield and Stark Future are keen on creating global mobility solutions. The manufacturer launched its first high performance electric motocross bike, Stark VARG recently.
Stark VARG high performance electric motocross bike
Stark Future is focused on performance electric motorcycles that contribute to sustainable mobility. The manufacturer has several patents on its newly developed Stark VARG.
Royal Enfield’s R&D programmes too are focused on sustainable mobility technologies. To this end, several ideas are in an advanced stage of testing. Earlier this year, Royal Enfield electric motorcycle plans were in the news. A concept called Electrik01 was also leaked.
The company intends to create uniquely differentiated electric motorcycles in the midweight segment. A segment where the company leads from the front. The investment sets the foundations for a long term partnership in collaboration research and development in electric motorcycles. This extends to technology sharing, technical licensing, and manufacturing.
Real breakout growth in the EV leisure space
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.”