Royal Enfield Gets Boost As Eicher Buys Stake In Spanish Motorcycle Co

Mobility Outlook Bureau
29 Dec 2022
10:03 PM
1 Min Read

With this investment by its parent company in Stork Future, Royal Enfield sends strong signal of its electric intent


Starkfuture

Eicher Motors, the parent company of Royal Enfield, will invest €50 million for a near 10.35% equity stake in Stark Future of Spain. 

Eicher will have a seat on Stark Future’s Board and will explore further opportunities to collaborate in electric mobility. According to a press release, the two companies are keenly on creating innovative and sustainable solutions in global mobility. 

Stark Future is a European electric motorcycle manufacturer with specific focus in the area of performance electric motorcycles. It has “deep understanding” in the EV space and connected technology. The company recently launched its first high performance electric motocross bike, the Stark VARG. 

Siddhartha Lal, Eicher Motors Managing Director, said, “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.” 

According to him, 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,” said Lal.

B Govindarajan, CEO of Royal Enfield, said this was a perfectly symbiotic partnership. “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,” he elaborated.

According to Govindarajan, while Stork Future are thought leaders in EV technology, particularly in lightweight components and innovative solutions, Royal Enfield “will draw on these capabilities for developing our EV platforms” and will also plan to share some EV platforms in the future.

Stark Future Founder and CEO, Anton Wass, said, “To 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.”

Also Read: 

Brazil To Become Royal Enfield's Second Largest Market: CEO

Royal Enfield Opens First Experiential Training Hub At HITS

Share This Page