Eicher Polaris shuts down 6-year-old JV

Eicher Motors Ltd (EML) has announced that the board of directors of Eicher Polaris Pvt Ltd (EPPL), EML’s equal joint venture with the US-based Polaris Industries Inc, has passed a resolution to close the operations of EPPL with immediate effect. As of December 31, 2017, EML invested Rs 289.50 crores in EPPL. For the year ended March 31, 2017, EPPL’s net loss amounted to Rs. 91.83 crore.

EPPL was incorporated in October 2012. In June 2015, the company launched Multix, India’s first personal utility vehicle, purpose-built for independent businessmen and targeted at rural India. Given its unique positioning and differentiated product features, Multix initially generated significant interest from customers. However, the company says the initial interest could not be sustained and the subsequent sales performance was significantly slower than the company’s expectations. Since launch, a total of 3,000 Multix vehicles have been sold in India. Despite several initiatives, the company’s performance could not be revived. Hence, to cut its losses, the board of EPPL has decided to close the operations of the company.

A Multix snapped on the road in Assam which, along with Kerala, was a key market for the product.  

The Multix could seat five people along with luggage or be adapted to provide luggage space of 1,918 litres. It employed a 511cc diesel engine developed by Greaves Cotton and was equipped with a 3KW power-take-off port called X-Port which could be used to power lights, pumps, etc.

After the market launch in 2015, EPPL had also come out with a BS-IV-compliant version in 2016. It was priced at Rs 3.43 lakh (ex-showroom, Jaipur), was available in two variants (AX+ and MX) and offered an improved fuel economy of 27kpl.

Autocar Professional learns that "all options were explored" before taking the call to close the JV. The much lesser-than-expected sales performance of the Multix, which was launched in 2015, made it difficult for the JV to continue operations. The vehicle had received a good response initially. Assam and Kerala are two key markets for the Multix. Though the product found takers in certain markets, the overall volume was not good enough for the joint venture to sustain.  

In the coming days, the JV will engage with customers, suppliers, employees and channel partners to implement the closure. It will continue to provide spares and service support for the fleet of Multix vehicles on the road.

Also read: Eicher Polaris begins exporting Multix to Nepal

Eicher Polaris takes Multix into Tier 1 cities, opens showroom in Delhi

Eicher-Polaris JV to more than double dealership count in India

Eicher Polaris to introduce BS IV Multix, expand network to 100 cities