Mahindra stops sales operations in UK due to the unfavourable response received for the e2o electric car; Brexit is also blamed as a reason for ceasing trade
In a major setback to Mahindra & Mahindra’s global expansion, the Indian auto major has stopped its sales operations in the United Kingdom. Mahindra has been exploring sales possibilities with its products in both US and Europe in recent times and the act of quitting operations altogether cannot be considered as a positive sign.
The move has come within a year after the e2o electric car was launched in UK. It was a first step in branching out its presence to European nations like Norway, Sweden and Netherlands. Mahindra sites the incompetent sales level of the e2o has led the management to take this decision.
Reported by Reuters, the statement was found in a letter addressing to one of its customers. The impact of Britain’s exit from European Union is also observed as the major cause as the sales targets could not be met, resulting in ceasing trade. Mahindra will be considering re-entering the market when the situation permits according to an e-mail response received by the publication.
The sales of e2o have stopped in UK with immediate effect while the pending orders will also be cancelled with return of amount paid to them. With the non-availability of spares and services for the existing customers, Mahindra could be forced to buyback all the e2o that were sold to the same value the buyers had purchased for.
Earlier, Mahindra struggled to get the act together in United States despite having spent a massive $100 million on launch plans. In 2015, the dire economic situation prevailed in Brazil resulted in Mahindra stopping sales of SUVs and pick-up trucks as well.
However, the ownership in SsangYong and Pininfarina will help the brand expanding in the near future. Due to the good response received for the SsangYong SUVs and the mooted planning of an electric sportscar badged Pininfarina for the US market could do wonders for the largest SUV maker in India. Moreover, Mahindra’s influential presence in Formula E will aid them technically in terms of battery and other future electric mobility solutions.