Mahindra Stops Sales Of e2o Electric Car In UK

The Reuters report claims Mahindra has cancelled all pending orders for the e2o in UK and will also buy back cars from existing customers.

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  • Mahindra launched e2o in the UK in April 2016
  • It deemed the level of e2o sales in the region as "untenable"
  • M&M said it will reconsider the UK market at an opportune time

Mahindra has ceased the sales of its electric car in the United Kingdom owing to paltry sales. Furthermore, according to the Reuters report, the company 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 Norway, Sweden, 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 required, hence our decision to cease trading at Mahindra UK with immediate effect and retract from the UK marketplace. 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 existing customers at the price they paid for it.


Mahindra Cars

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'll reconsider 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 indsutry 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 vehicles in an international market last year, when it stopped selling its SUVs and pick-up trucks in Brazil due to change in local regulations and low volumes.

© Thomson Reuters 2017

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