Eicher to buy 10.35 pc in Spanish co Stark Future for over Rs 440 cr
NEW DELHI: Eicher Motors Ltd on Thursday said it will acquire a 10.35 per cent equity stake in Spanish electric motorcycle maker Stark Future for 59 million euros (Rs 440 crore).
The acquisition is part of a strategic collaboration in the electric motorcycle space with Stark Future SL, said Eicher Motors, the parent company of Royal Enfield, a mid-weight motorcycle manufacturer.
The Board of directors of Eicher Motors at its meeting held on Thursday “approved an investment of euro 50 million for a close to 10.35 per cent equity stake in Stark Future,” the company said in a statement.
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, it added.
The investment will pave the way for a long-term partnership in collaborative research and development in electric motorcycles, technology sharing, technical licensing and manufacturing, the statement said.
Eicher Motors MD Siddhartha Lal said at present leisure motorcycles do not easily lend themselves to EV technology due to challenges like the battery range, packaging, weight and cost, thereby resulting in stunted growth of the segment. However, he said, “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.
Lal further said “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.”
Stark Future founder-CEO Anton Wass said the company had aimed to challenge and inspire the motorcycle industry with the creation of the Stark VARG and by bringing its and by bringing its electric technology from the drawing board to reality.
Royal Enfield CEO B Govindarajan said, “While they are scaling up and planning their market entry soon, we will support Stark in the industrialisation process”.
“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,” it said.