Eicher Motors Ltd (EML) on Thursday, December 29, announced a strategic collaboration in e-motorcycles with European electric motorcycle manufacturer Stark Future SL. The board of directors of EML has approved an investment of 50 million euros for a 10.35 percent equity stake in Stark Future, the company said in an exchange filing.

Also, the company will enter into an investment agreement, shareholders agreement, and a technical collaboration agreement in the space of electric motorcycles with Stark Future.

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Stark Future SL is a European electric motorcycle manufacturer, which was incorporated in Barcelona, Spain, in July 2020, with a specific focus on the area of performance electric motorcycles. Stark Future manufactures sustainable products that are superior to traditional technology in performance, emotion and design.

It has recently launched the motocross bike, VARG, and has received over 17,300 bookings in the last 11 months across three major markets — the US, Western Europe, and Australia. The commercial production of the VARG is expected to commence in the first half of 2023.

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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, the company said.

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With the investment, Eicher Motors will have certain customary minority protection rights including a seat on the board of directors of Stark Future. The transaction documents are expected to be executed and closed by the first quarter of 2023, it said.

(Edited by : Shoma Bhattacharjee)