March 12: Royal Enfield parent Eicher Motors has decided to pull the shutters down on its personal utility vehicle division established as a joint venture with the American company Polaris. Close to Rs 2.9 billion was invested by the company in the joint venture, which in the financial year 2017 incurred a loss of Rs 0.91 billion.
In the year 2015, Eicher Polaris launched India’s first personal utility vehicle, Multix targeting the businessmen of smaller cities and towns. The vehicle, which was built at the Jaipur manufacturing unit, had a separate marketing network.
The company, according to a BS report, said that in the beginning the vehicle generated remarkable interest from the customers, but it could not be sustained. The sales performance failed to reach expectations and the venture’s performance could not be revived in spite of various measures taken by the company.
The company has now decided to close down the operations with the approval of all its stake holders. To execute the closure of the joint venture firm, the company will engage with all its stakeholders including customers, suppliers, employees and channel partners in the coming days. According to a company statement, Eicher Polaris will continue supplying spares and service support for the Multix vehicles on the road.
In 1999, Eicher had set up its Royal Enfield manufacturing unit but shut it down and moved it to the Chennai unit due to the less motorcycle volumes. The plant for Multix in Jaipur was built at the same spot where Royal Enfield motorcycles were earlier manufactured.