- The Board of Eicher Motors Ltd. (EML) has approved a strategic investment 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 a 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.
Eicher Motors Ltd., a leading Indian multinational automobile company and parent company of Royal Enfield, the global leader in the mid-weight motorcycles segment (250cc-750cc), announced a strategic collaboration in the space today of electric motorcycles with Spain-based Stark Future SL.
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€ 50 million Investment
As part of this collaboration, the Board of Directors of Eicher Motors Ltd. has approved an investment of € 50 million for a close to 10.35% equity stake in Stark Future. With this investment, Eicher Motors Ltd. will have a seat on Stark Future’s Board and explore further collaboration opportunities in electric mobility.
This investment has strategic significance for Royal Enfield and Stark Future, as both companies are keenly invested in creating innovative and sustainable solutions for global mobility. Stark Future recently launched its first high-performance electric motocross bike, the Stark VARG, which received an exceptional response from international 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 fantastic 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.
It 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 the range, weight, packaging and cost.
They have created an excellent 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 possibility to use this solid 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 plan to share some EV platforms in the future”.
Also speaking about this partnership, Stark Future Founder and CEO Anton Wass say, “We aimed to challenge and inspire the motorcycle industry by creating the Stark VARG and bringing our electric technology from the drawing board to reality. To partner with one of the very first motorcycle brands in history and be part of their journey towards sustainability is a massive inspiration for us at Stark.
We have worked closely with Sid, Govind and the 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 on continuing building and developing 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, but our link with Royal Enfield and what lies in store in the coming years are illuminated signs for the future.”
Stark Future is a European electric motorcycle manufacturer focusing on performance electric motorcycles. With a vision to inspire the motorcycle industry towards sustainable mobility, Stark Future endeavours to build sustainable products that are superior to traditional technology in performance, emotion & design. Stark Future deeply understands EV space and connected technology, with several patents on its newly developed Stark VARG.
Royal Enfield has made huge strides on its EV journey over the last few years. The company’s R&D programmes have included a significant focus on sustainable mobility technologies, and there are several ideas in the advanced stages of testing.
The company has been aggressively building a solid and insightful understanding of the EV space, intending to create uniquely differentiated electric motorcycles with strong Royal Enfield DNA in the midweight segment. Royal Enfield has been building several thoughts and approaches towards design and development and bringing in the right talent and resources.