Eicher Motors announces closing of Eicher Polaris Pvt Ltd operations, Multix discontinued
Eicher Motors Limited (EML) has announced today that its joint venture with US-based Polaris Industries Inc, Eicher Polaris Private Limited (EPPL) will close operations in India. The decision was taken by the board of directors of Eicher Polaris Private Limited on March 9, 2018, after passing a resolution to close operations with immediate effect. The reason cited behind this shutdown has been the dismal sales performance of the brand's only offering in the country, the Multix. The Multix was launched as a personal utility vehicle in 2015, but it reached more parts of the country in BS IV compliant form in 2017.
However, the initial interest from customers could not be sustained and the subsequent sales performance was significantly slower than the company's expectations. Eicher Motors has stated that as of December 31, 2017, EML had invested Rs 289.50 crore in EPPL. In the financial year 2016-17, EPPL's net loss amounted to Rs 91.83 crore. EPPL was incorporated in October 2012. The Company will continue to provide spares and service support for the fleet of Multix vehicles on the road.
