Eicher Motors and Polaris Industries have decided to shut down operations of their 50:50 Joint Venture – Eicher Polaris, with immediate effect. The company was incorporated in 2012 to serve the niche personal utility vehicle market and had launched the Multix PUV in 2015.
Reports suggest that the company didn’t manage to sustain the initial customer interest shown in its product. The mangement did try to introduce many updates to the Multix in order to expand its market share. This included the launch of a BS-IV variant as well, which was aimed at Tier-I cities. However, all these attempts appear to have failed to bring in the desired response.
As a result, sales of the Multix have been discontinued with immediate effect. However, the company will continue to provide spare parts and service support to all existing Multix customers in the near future. As part of the closure process, Eicher Polaris will also engage all stake holders (customer, employees, suppliers and channel partners) to find the easiest way out for everyone.
Till date, Eicher and Polaris have invest around Rs. 580 crore in the said joint venture. They had a full blown manufacturing facility in Jaipur, Rajasthan, and had a dealership network of around 60 outlets. Interestingly, the company recorded a net loss of Rs. 91.83 crore during the last fiscal, ended March 31, 2017.