In 2015, Eicher Polaris, the joint venture company, had launched Multix, which was positioned as the country's first personal utility vehicle. During the year ended March 31, 2017, EPPL's net loss amounted to ₹91.83 crore, 50% of which was consolidated with the profit after tax of Eicher Motors Limited, the firm said. There was a lot of interest initially, however, the subsequent sales performance was significantly slower than the company's expectations. The Multix was a ideal utility vehicle for light use as it doesn't need to be registered as a commercial vehicle.
"Hence, the board of EPPL has concluded that, in the present circumstances, it is in the best interest of all stakeholders to close the operations of the company", the statement added. Explaining the reason for deciding to end the JV, the company said despite several initiatives, the EEPL's performance could not be revived. Hence, to cut its losses, the board of EPPL has made a decision to close the operations of the company. 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. 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. The much lesser-than-expected sales performance of the Multix, which was launched in 2015, made it hard for the JV to continue operations. But the Multix failed to deliver the results and did not click in the rural market.
As per the law, Eicher Polaris will continue to provide sales and service support to existing owners of the Multix.
As part of the winding down process, the company will engage all it stakeholders (customers, suppliers, employees and channel partners) to implement the closure.