Eicher shuts down its loss-making personal utility vehicle business

The company had invested Rs 2.9 billion in the Polaris joint venture

Eicher Motors, the maker of Royal Enfield motorcycles, has decided to shut down with immediate effect the personal utility vehicle division that it had set up as an equal joint venture with American firm Polaris.

The company had invested in the venture an amount of Rs 2.9 billion, which will now be written down. The joint venture incurred a loss of Rs 0.91 billion in FY17.

Eicher Polaris, the joint venture company, had launched Multix, positioned as the country’s first personal utility vehicle in 2015.

The vehicle was to target independent businessmen in smaller cities and towns. A