Eicher Motors Limited announced that the board of directors of Eicher Polaris Private Limited, the company's equal joint venture with US-based Polaris Industries Inc. passed a resolution to close the operations of EPPL with immediate effect.
As of 31 December 2017, Eicher Motors had invested Rs289.50 crore in the joint venture and the amount invested so far, together with additional investments, as required to close down the operations, shall be written down, the company mentioned in the press release.
Incorporated in 2012, Eicher Polaris launched Multix personal utility vehicle in 2015 was aimed at independent businessman. So, in theory, it was the flawless vehicle for the Indian farmer and rural India.
Despite several initiatives, the EEPLs performance could not be revived. Hence, to cut its losses, the board of EPPL has chose to close the operations of the company. The Multix is a five-seater vehicle with cargo space or can be adapted to offer around 2-litre of cargo space. It could even be used as a portable power supply unit with a unique power take off unit that can be used to supply up to 3kW of power for anything - powering a generator, drilling machines, water pumps, etc. Eicher Polaris introduced the BS-IV compliant version of the Multix in 2016 with a starting price of Rs 3.19 lakh ex-showroom (India).
Autocar Professional learns that "all options were explored" before taking the call to close the JV.
The end of this agreement means that Multix will no more be manufactured and it will be discontinued in the country. The vehicle had received a good response initially. But the Multix failed to deliver the results and did not click in the rural market. The company will continue to provide spares and service for the existing Multix customers stated the company.
In the coming days, the company will engage with all its stakeholders including customers, suppliers, employees and channel partners to implement the closure.