Eicher buys Stake at Spanish Motor Co: Royal Enfield to Benefit

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

Highlights

1. Eicher Motors will be investing €50 million in Stark Future of Spain.
2. This move will give a huge boost to Royal Enfield.
3. Eicher also looks forward to collaborate in electric mobility.

Royal Enfield gets major boost

Eicher will join the Stark Future Board of Directors and will look for additional opportunities to collaborate in electric mobility. According to a press release, the two companies are committed to developing innovative and sustainable global mobility solutions.

Stark Future is a European electric motorcycle manufacturer specialising in performance electric motorcycles. It has "in-depth knowledge" of the EV space and connected technology. The Stark VARG is the company's first high-performance electric motocross bike.

"We love the vision, passion, and focus of the amazing team at Stark Future," said Siddhartha Lal, Managing Director of Eicher Motors. “Due to challenges such as battery range, packaging, weight, and cost, leisure motorcycles do not easily lend themselves to EV technology at this stage."

This, he claims, has resulted in "stunted growth" of this segment until now. Stark Future has "understood and harnessed" the potential of EV technology by outperforming ICE offerings in terms of range, weight, packaging, and cost.

"They have created an absolutely astounding motocross motorcycle - the Stark VARG as their entry into the EV world. "With this model, we believe Stark Future has the greatest potential for real breakout growth in the EV leisure space, as well as the potential to use this strong foundation to expand into other contiguous segments and beyond," said Lal.

According to B Govindarajan, CEO of Royal Enfield, this is a perfectly symbiotic partnership. "We are very excited to work closely with Stark Future, who are as focused as we are on challenging norms, pushing boundaries, and creating uniquely differentiated offerings for riders," he added.

While Stork Future is a thought leader in EV technology, particularly in lightweight components and innovative solutions, Royal Enfield "will draw on these capabilities for developing our EV platforms" and plans to share some EV platforms in the future, according to Govindarajan.

"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," said Anton Wass, Founder and CEO of Stark Future. We've now been working closely with Sid, Govind, and the team for a few months and have been deeply impressed by what they've accomplished over the last 25 years."