Poor sales and Brexit blamed for a rollback of the e2o
Indian automaker Mahindra & Mahindra will immediately exit the UK’s market for electric vehicles as a result of weak sales, Reuters reports.
The decision comes less than a year after it launched the electric e2o microcar, a spiritual and commercial successor to the G-Wiz. Designed to be compact for use in packed urban environments, the e2o had a 15.4kWh battery with a stated range of about 80 miles, although some reviews suggested this was optimistic.
Mahindra had reportedly seen the UK as a launch-pad for selling the cars in continental Europe, in countries such as the Netherlands, Sweden and Norway.
As with a number of businesses, the group inferred recent political upheaval was a factor in its decision. “Immediately post Brexit, the e2o has not met the desired sales targets as per the plans for the UK market,” a Mahindra spokesman told the news service in an email.
Pending orders of the car will be cancelled and the company will buy back cars already sold at the same price that customers paid. It has not stated how many cars were sold, or the level of investment the group had made in the UK.
“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,” stated a letter from the company to a car buyer, and seen by Reuters.
However, Mahindra will “reconsider the UK market at an opportune time” the spokesperson concluded.
The withdrawal from the UK follows a discontinuation of the two-door version of the model in India, announced in November 2016, but that exports would continue. The group said it would instead focus on sales of its four-door e20 Plus in its home market.