March 12, 2018 / 5:58 AM / 10 months ago

UPDATE 1-India's Eicher Motors shuts JV with U.S. partner Polaris

* JV Eicher Polaris was formed in 2012

* Launched personal utility vehicle 'Multix' in 2015

* Eicher Motors invested 2.90 bln rupees in JV (Adds details from statement, background)

March 12 (Reuters) - India's Eicher Motors Ltd said on Monday it is shutting down its joint venture with U.S.-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 918.3 million rupees ($14.13 million) for the year ended March 31, 2017, said Gurgaon-based Eicher Motors, adding that it had invested 2.90 billion rupees in the venture as of Dec. 31.

Eicher Motors, best known for its Royal Enfield motorcycles, will continue to provide spares and service support for the Multix vehicles, it said. ($1 = 64.9850 Indian rupees) (Reporting by Vishal Sridhar in Bengaluru; Editing by Subhranshu Sahu)

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