Mahindra Ends Sales Of e2o Electric Car in UK
Mahindra has ceased the sales of its electric car in the United Kingdom owing to paltry sales. Also, as per the Reuters report, the business is in the process of putting up the shutters there, marking a setback for its global ambitions. The decision to exit from the UK comes less than a year after Mahindra introduced the e2o electric car in the country – a market it deemed a launch-pad for selling electric cars in Europe, especially to countries such as Sweden, Norway and the Netherlands.
Reuters quoted Mahindra as saying in an April letter addressed to one of its buyers in the country, “The level of e2o sales achieved is at an untenable level for us to maintain the investment essential, hence our decision to cease trading at Mahindra UK with immediate effect and retract from the UK market. Other than announcing that it has stopped the sale of e2o in UK with immediate effect, Mahindra, in the letter, also said it has cancelled all pending orders and will buy back cars from current clients at the price they paid for it.
A Mahindra spokesman told Reuters, “The Indian EV market is poised for a take-off and given that scenario, we are primarily focusing on the Indian market. We will reconsider about the UK market at an opportune time.”
Though Mahindra cites Brexit for its performance, or rather the lack of it, car sales in the region continue to register growth. According to industry data, a record 2.69 million vehicles were sold in the UK last year. Alternative fuel vehicles constituted over 3 per cent of that number, but data shows they are growing faster than conventional cars. Mahindra also pulled the plug on sales of its cars in a global market last year, when it stopped selling its SUVs and pick-up trucks in Brazil due to change in low volumes and local regulations.