Multix bites the dust in mobility arena

The Multix is history. This unconventional four-wheeler will no longer be produced at the Eicher Polaris plant in Jaipur.

In the three years since it was part of the Indian landscape, total Multix sales were a mere 3,500 units. This was in stark contrast to its potential customer base of 5.8 crore people. It promised plenty as a mobility solutions provider but fell woefully short of expectations.

The initial problems on its engine noise were enough to put off interested users. And as much as Eicher Polaris tried hard to remedy the vehicle as well as its business strategy, it was of no avail.

Thorough research

The failure of the Multix is a pity because a lot of work had gone into its development. It only seems like yesterday when the product was launched with much fanfare in June 2015. Before kicking off talks with Eicher, Polaris was looking at Brazil as a potential entry market but India took precedence as it joined hands with Eicher.

The partners carried out careful market research for a couple of years during that time they went all out to learn what the targeted user, the independent businessman, really wanted. They studied his life and mobility requirements, both in the personal and business space. The research also showed that electricity supply in his area of operations, largely small towns, was extremely erratic.

It was clear that the targeted customer was distinctly unhappy on a two-wheeler as it was unsafe for his family and posed problems during rains. If he had to hire a cab, its availability and costs were a challenge too.

Thus were sown the seeds for the Multix and the key was to focus on frugal innovation and make a vehicle that was not considered jugaad. It was not a case of putting it together in some random way but to be really precise.

Multifunctional product

Officials said the best levels of robotics, tool making and fixtures were used for the Multix while ensuring that its cost structure remained competitive. The other USP was the X-Port, a power takeoff point, which could generate up to 3 kW and come in handy for applications such as drilling and pumping water.

In short, this product would double up as a car, pickup van and generator. At the personal level, it needed to ensure good ride and handling while assuring the user excellent utility for his business. In hindsight, the Multix was trying too hard to deliver a host of solutions and ended up being short on all.

For customers who wanted to graduate from motorcycles and mopeds, a car was a better solution than this offering. Likewise, there were established cargo carrier options from Tata and Mahindra, which more than met their requirements.

Eicher Polaris tried hard to reboot the strategy by making this a city-centric offering, which could be used by food delivery chains and mobile laundries. There was some interest generated, but this did not translate into big numbers that could justify more investments. Eventually, when it was clear that there was no way the script could be salvaged, the partners decided that enough was enough.

Another Nano?

There are some similarities with the Multix and the Tata Nano in terms of their targeted end-user who was essentially a two-wheeler rider. The thought process was that both these options were better than a bike or scooter in terms of comfort and safety. On the face of it, there are no arguments about the fact that a two-wheeler rider is more vulnerable on roads compared to someone driving a car.

Yet, the Nano failed largely because of its “cheap” price tag. It may have caught the attention of the world as a ₹1-lakh car and a marvel in frugal engineering but this was not enough to convince its customers who wanted a worthier brand connect.

The Nano was targeted at the two-wheeler rider except that he was still associated with a top brand such as the Hero Splendor or Honda Activa and naturally aspired for something similar in cars. After all, his new acquisition would need to catch the eye of his neighbors rather than risk their scorn.

The Nano was doomed to fail though, in all fairness, it could have been spared the ignominy of being projected as a cheap car and marketed as a smart mobility offering instead. What is incredible, though, is that a similar petite offering from the same company took off like a rocket in the commercial vehicle space.

Tata Ace’s success

This was the Tata Ace, which debuted three years prior to the Nano in 2005 and truly emerged a segment creator. Suddenly, drivers realised that they could also hold their heads high in a business arena that is hardly synonymous with glamour. An extra wheel along with a smart cabin and stylish looks made all the difference as the Ace hit the bull’s-eye and its sales soared.

In the process, it prompted rival manufacturers to throw their hats into the ring with similar products but the Ace still held its own and is still going strong. In contrast, the Nano is now on its last legs even while it had a far more glittering launch at the 2008 Delhi Auto Expo.

It now remains to be seen how the market reacts to Bajaj Auto’s Qute when it makes its debut as the country’s first quadricycle. It was first showcased at the 2012 Auto Expo and turned out be an anticlimax for those expecting to see something more like a car. After all, this project was part of the ULC (ultra low cost) car planned jointly with Renault-Nissan.

Not all manufacturers took kindly to the RE 60 as it was known then with questions raised on its safety. Bajaj Auto maintained that its product was superior in fuel economy and emissions compared to cars.

As for safety, it argued that this was a much better option than its three-wheeled auto rickshaws whose drivers would now have a better experience with the quadricycle.

The years have gone by with the RE 60 now rechristened Qute and tipped to make its India entry soon.

It remains to be seen how customers will react to the offering. Will it be a super success story like the Tata Ace or end up as a damp squib like the Multix?

With rapid urbanisation and greater pressure on public transport, mobility solutions have become the order of the day in India. The people carrier version of the Ace, Magic, is now a shared taxi in a host of cities. The TVS moped, which was one of the earliest options on two-wheels, is still going strong as is the Bajaj auto rickshaw.

New entrants such as Multix have opted out of the race while the Qute still has not tested the waters. The future will see more mobility solutions that will be a survival of the fittest and see the men separated from the boys.

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