It was barely six months ago when Indian cricketer, Jasprit Bumrah, was awarded a Multix for his match winning performance in a one-day series against Sri Lanka.
On Monday, came the news that Eicher Polaris was stopping production of this four-wheeler with immediate effect. A statement from Eicher Motors, the joint venture partner with Polaris Industries of the US, indicated that it was getting increasingly difficult to sustain operations with sales ‘significantly slower’ than expectations.
The combined investment from the partners is close to ₹600 crore and losses, thus far, are estimated to be well over ₹100 crore. Nearly 3,500 vehicles have been sold since June 2015, when the Multix was first launched at its manufacturing base in Jaipur.
Biggest deterrent
This is clearly a minuscule number and top industry sources say sales could have been “10 times as much” if other essentials were in place. The first was the engine whose noise levels did not go down too well with users.
Positioned as a vehicle which offered the ideal mix of personal travel and commercial applications, the Multix just could not get the right balance. As an industry source said, competing pickups from Tata Motors and Mahindra & Mahindra were perceived as far better options for carrying cargo.
On the personal driving side, the targeted Multix user would have preferred an entry-level option like the Maruti Alto. “The mistake was in attempting too much too soon,” said another source. This was a new brand entering a new segment where its user segment in rural India was a two-wheeler rider. The Multix was positioned as the next best bet as a mobility solution except that its loud engine ended up being the biggest deterrent.
Target buyers
At the time of its launch in 2015, Eicher Polaris had indicated a potential user base of 5.8 crore as its targeted users. These were independent businessmen operating out of smaller parts of the country whose mobility options were confined to two-wheelers.
The company was reasonably confident that the solution in the form of the Multix would “resonate” with its target buyer since it had high ground clearance and offered enough seating space for five people. Officials said the best levels of robotics, tool making and fixtures were used for the Multix whose precision levels were “totally on a global perspective”. However, when it came to ground reality, the vehicle just could not take off on the expected lines. Apart from the engine being an issue, it was quite apparent that these customers preferred established cargo carriers like the Tata Ace and a full-fledged car when they wanted to graduate from a two-wheeler.
After all, when it came to comfort and an overall feeling of a personal vehicle, there was no way the Multix will be top-of-recall against an established model like the Maruti Alto. Given that the Tata Nano could not crack this space either, it would have been too much for an unconventional, though stylish, four-wheeler to try something similar.
Urban offering
Eicher Polaris then decided to reposition the Multix as an urban offering where it could possibly reach out as a customised solution for user segments such as laundry and food delivery services and so on.
Showrooms were inaugurated in cities but customer response was still slow in coming.
And even while being in the spotlight like the recent cricket tourney in Sri Lanka, it was now getting increasingly clear that the Multix had run its course.
Polaris will now focus on the Indian motorcycle business, while Eicher will, likewise, confine its interests to the joint venture with Volvo for trucks as well as Royal Enfield for bikes.