Mahindra pulls the plug on electric car sales in UK

The level of e2o sales achieved is at an untenable level for us to maintain the investment required.

Update: 2017-05-03 12:01 GMT
Mahindra and Mahindra Ltd and Ford Motor Co said on Monday the two companies are exploring forming a strategic alliance.

Mahindra & Mahindra has stopped selling its electric car in the United Kingdom due to meagre sales and is winding up operations there, according to a document seen by Reuters, in a setback for the Indian automaker's global ambitions.

Mahindra's exit from the UK comes less than a year after it launched the e2o car in a market it considered a launch-pad for selling electric cars in Europe, especially to countries like Norway, Sweden and the Netherlands.

"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," Mahindra said in an April letter addressed to one of its buyers in the country.

"The Indian EV market is poised for a take-off and given that scenario, we are primarily focusing on the Indian market," said a Mahindra spokesman, in response to a Reuters query for comment. "We'll reconsider the UK market at an opportune time."

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