Eicher Motors to Invest in Stark Future for Development of Electric Motorcycles
Last Updated: December 30, 2022, 14:47 IST
Royal Enfield – Image Used for Representational Purpose (Photo: Royal Enfield)
Eicher Motors-owned Royal Enfield and Spain-based Stark Future will work together to develop electric motorcycles as part of this collaboration plan
Eicher Motors, the parent company of Royal Enfield, will make an investment of € 50 million for a close to 10.35 percent equity stake in Stark Future. The Board of Directors of Eicher Motors Ltd. have approved this investment plan. Stark Future is a Spain-based electric motorcycle manufacturer with specialization in the field of performance electric motorcycles.
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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”
With this investment, Eicher Motors will get a seat on Stark Future’s Board which will further help it in exploring opportunities to collaborate in the space of electric mobility. The company will also be able to nominate a Director to the Board of Stark Future. Recently, Stark Future introduced its first high performance electric motocross bike in the form of ‘Varg’ and it received an overwhelming reception.
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”
Royal Enfield has extensive plans to introduce electric motorcycles in the Indian market as well as various global markets. Hence, this partnership with Stark Future towards the research and development in electric motorcycles, technology sharing, technical licensing, and manufacturing will go a long way for the company.
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.”
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