March 12, 2018
Eicher Motors Ltd said on Monday that it is shutting down its joint venture with US-based Polaris Industries Inc. immediately, as sales failed to meet expectations after the initial success.
The equal venture, Eicher Polaris Pvt. Ltd, was formed in 2012 to manufacture Multix, which the companies touted as India’s first personal utility vehicle to carry passengers as well as cargo.
“The initial interest could not be sustained and subsequent sales performance was significantly slower than the company’s expectations,” Eicher Motors said in a statement.
Eicher Polaris reported a net loss of Rs91.83 crore for the year ended 31 March 2017, said Gurgaon-based Eicher Motors, adding that it had invested Rs290 crore in the venture as of 31 December.
Eicher Motors, best known for its Royal Enfield motorcycles, will continue to provide spares and service support for the Multix vehicles, it said.
At 11.36am, Eicher Motors shares traded 0.85% higher at Rs28,110.60 on BSE, while the Sensex gained 0.86% to 33,593.77.
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