Agencies, New Delhi
Leading automotive company Eicher Motors Limited (EML) on Monday announced closure of operations of its joint venture Eicher Polaris Private Limited (EPPL) with immediate effect. EML had an equal joint venture with US-based Polaris Industries Inc.
With this announcement, the production of its personal utility vehicle Multix also came to a halt. In June 2015, the Company launched “Multix”, India’s first personal utility vehicle, purpose-built for the independent businessman. Given its unique positioning and differentiated product features.
Multix initially generated significant interest from customers. However, the initial interest could not be sustained and the subsequent sales performance was significantly slower than the Company’s expectations.
“Despite several initiatives, the Company’s performance could not be revived. 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,” a company release said.
In the coming days, the Company will engage with all its valued stakeholders including customers, suppliers, employees and channel partners to implement the closure. The Company will continue to provide spares and service support for the fleet of Multix vehicles on the road, the company said.
As of December 31, 2017, EML had invested Rs. 289.50 crore in EPPL. The sums invested so far, together with additional investments, as required to close down the operations, shall be written- down in accordance with the applicable regulations, it added.
During the year ended March 31, 2017, EPPL’s net loss amounted to Rs. 91.83 crore; 50 per cent of which was consolidated with the Profit After Tax of EML.