Mahindra e2o – gate turn

15 May 2017

The Indian company has discontinued sales of the e2o electric car in the UK

The Indian company Mahindra&Mahindra to stop selling the e2o electric cars in Britain due to weak demand and, moreover, buys the copies already sold at the price at which they were sold, as well as completely winding down its commercial activities in the United Kingdom. It was a new blow to the global ambitions of the Indian automaker's No. 2. 

The British lost the opportunity to join the electric car e2o, ostensibly because of Brexit (as stated by appearing in the photo Mahindra CEO Anand Mahindra), although I think that affected the overall arrogant attitude to the production capabilities of the former "pearl of the British crown"

This solution M&M had taken less than a year after the start of sales of the e2o electric car on the British market, which was to become the launching pad for market penetration of electric vehicles in European countries, especially those "electrolobby" as Norway, Sweden and the Netherlands.

According to the company, the "kid" e2o has fallen short of his hopes to conquer the UK market primarily because of the decision of the UK leaving the European Union (the so-called Brexit). 

However, M&M says that someday will return to the former mother: "...at the right time", and yet intends to focus on the domestic market, moreover, the electric vehicles in India are experiencing soaring sales.

This step was another painful blow at the export ambitions of the company, which has spent a decade ago to about $100 million trying to enter the United States market with a compact pickup. And most recently in 2015 Mahindra&Mahindra was forced to stop sales of pickups and SUVs in Brazil due to the recession of the local economy and increase the share of mandatory localization of foreign car brands.

In April 2016, Mahindra has launched in the UK two versions of the e2o electric car (2 seater at a starting price from 12 995 pounds ($16 793), and elongated 4-seater version Plus. Buyers can test electric vehicles at several places, but to buy only through the Internet, but not through dealers

However, M&M continues to advance in other markets. For example, the South Korean subsidiary SsangYong Motor is considering starting production in China, where import duty is extremely high. A decision may be made by mid-2017.

Mahindra did not disclose the amount of their investments in the UK and the number sold in this country of electric vehicles.

While the UK car market continues growth, despite forecasts that demand will be "killed" because of the consequences of Brexit. So, in 2016, car sales in Albion reached a record level of 2.69 million of this amount on rechargeable hybrids and electric cars, and other vehicles on alternative fuels accounted for only slightly more than 3%, but their sales grew faster than that of conventional cars with internal combustion engines.

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