Eicher: Eicher Motors, the parent company of Royal Enfield, has authorised a strategic investment in the European producer of electric motorcycles Stark Future SL in an effort to accelerate the business’s entry into the electric vehicle market.
According to a statement released by the business on Thursday, as part of the agreement, Eicher Motors will make an initial equity investment of €50 million (about Rs. 439 crores), which translates to a 10.35 per cent ownership stake in Stark Future SL. Eicher Motors will have a seat on Stark Future’s board as a result of this investment, and the two companies will look into more prospects for cooperation in the field of electric mobility.
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Investment details
The Board of Directors of Eicher Motors Ltd. “approved an investment of euro 50 million for a close to 10.35 per cent equity stake in Stark Future” during its meeting on Thursday, according to a statement from the business.
Eicher Motors will join Stark Future’s board of directors as a result of this investment, and the company said it will look into more potential for cooperation in the field of electric mobility.
According to the statement, the investment will open the door for a long-term collaboration in research and development, technology sharing, technological licencing, and production of electric motorcycles.
According to Siddhartha Lal, managing director of Eicher Motors Ltd, leisure bikes currently do not easily lend themselves to EV technology because of difficulties with battery range, packaging, weight, and cost, which has hampered the segment’s growth.
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. They have created an absolutely astounding motocross motorcycle – the Stark VARG as their entry into the EV world”.
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