Eicher Motors, parent company of Royal Enfield which manufactures mid-weight motorcycles segment (250cc-750cc), on Thursday said it has acquired 10.35 per cent equity stake for €50 million in Spain-based Stark Future SL for collaboration in electric motorcycles space.
With this investment, Eicher Motors will have a seat on Stark Future’s Board, and will explore further opportunities to collaborate in the space of electric mobility, the company said in a statement.
This investment has strategic significance for both Royal Enfield and for Stark Future, as the duo is 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, it said.
Breakout growth
“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,” Siddhartha Lal, MD, Eicher Motors, said.
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, he said. “Stark Future has been able to understand and harness the potential of EV technology by dramatically outperforming internal combustion engine (ICE) offerings, without compromising on range, weight, packaging and cost,” Lal added.
Royal Enfield has made huge strides on its EV journey over the last few years. The company’s R&D programmes have included a major focus on sustainable mobility technologies, and there are several ideas in advanced stages of testing. The company has been building a sharp and insightful understanding of the EV space with an intention to create uniquely differentiated electric motorcycles with strong Royal Enfield DNA, in the midweight segment, the company said.
“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... 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,” Anton Wass, Founder and CEO, Stark Future, said.