The Mahindra Group owned electric two-wheeler brand GenZe will be shut down within the next six months. The GenZe brand is a California-based manufacturer of electric bicycles and scooters, and has been selling e-bikes and scooters exclusively in the US market. Announcing the financial results for the fourth quarter of the financial year 2019-20, Mahindra and Mahindra Managing Director, Dr. Pawan Goenka announced that the US-based wholly owned subsidiary will be shut down. Mahindra is in the process of liquidating stocks of GenZe and the business will be shut down completely in six months' time.
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According to Goenka, the intellectual property from GenZe will be used for Mahindra Electric or some other brand within the Mahindra Group. Among the products of GenZe are electric bicycles offered on a public bike sharing system in the US, and the electric scooters including the GenZe 2.0 electric scooter, are used for delivery services, and also available through public scooter sharing systems in California. The GenZe was spotted testing in India as well, more than two years ago, and at one point Mahindra was even considering the possibility of introducing the electric scooter in India. Now, it seems the GenZe will be dissolved completely and any technology and intellectual property could possibly make its way to other electric products, under the Mahindra Electric brand.
On Friday, June 12, 2020, Mahindra and Mahindra announced the company's quarterly results. The company announced net loss of ₹ 3,255 crore in the January to March, 2020 quarter, compared to a profit of ₹ 969 crore in the same period a year ago. Revenue of the company declined 35 per cent to ₹ 9,005 crore during the quarter under review, compared to ₹ 13,808 crore during the same quarter a year ago. Sales were affected due to lower industry volumes in both automotive and tractor segments, transition to BS6 emission regulations and the countrywide lockdown due to the COVID-19 pandemic in March, the company said.
Mahindra reported a one-time impairment of ₹ 3,577.64 crore. The impairment was recognised based on the performance of certain subsidiaries, associates, joint ventures and due to the Covid-19 pandemic, the company said. Almost 80 per cent of this impairment is due to the write-downs of investments in Ssangyong, as well as some other international subsidiaries, which hurt the company's bottom line.