Mahindra e2o to be launched in the UK

Mahindra Reva Electric Vehicles, a part of the US$ 16.9 billion Mahindra & Mahindra (M&M), is to launch the small eco-friendly car in London soon, possibly within a month.

Confirming the news to our sister publication Autocar Professional, Pravin Shah, president and chief executive (automotive), M&M, said: “Yes, absolutely! This is a great example under the government’s 'Make In India' initiative. We are ready with the product. We plan to launch the Mahindra e2o in many European markets in the next few months, starting with London very soon.” The company plans to sell the car on its own in the United Kingdom and looks forward to reap the benefits under the same tax structure and incentives that are offered to the other electric vehicle manufacturers there. “We will get the support and incentives as enjoyed by the other EV makers in the UK. We plan to distribute the e2o on our own,” added Shah.

M&M launched the e2o in March 2013, replacing the Reva electric car, and rolled out the premium variant of the e2o in August 2014. The premium variant, which offers a company-claimed range of 120km in a single charge, comes with the same 48V maintenance-free lithium-ion battery pack that provides charge to the three-phase induction motor.

Mahindra Reva Electric Vehicles, which is estimated to have spent more than Rs 100 crore in the electric car project, has a production capacity of 30,000 units per annum at its Bengaluru-based facility. The company which is still far from breaking even, is known to have received some stimulus in its domestic sales after the government’s announcement (incentives to the buyers under the FAME scheme) that came on April 1, 2015. The company had even slashed the prices of its e2o variants by Rs 1,55,000 last year.

However, domestic sales of the Mahindra e2o continue to remain on the lower side. Pawan Goenka, executive director and president (automotive and farm sector), M&M said: “For us the biggest concern is that EVs continue to be expensive due to the high cost of batteries and other components. A breakthrough is required to bring down the overall costs of EVs, and we can be certain that this will happen. The challenge is how to convince the consumer that EVs are good for them, not only from an environment viewpoint, but also from the aspect of financial prudence.” On the other hand, the plan to export to European markets in a few months clearly comes as a piece of good news from the company, say market analysts. This will, however, be the second European connect for India’s first electric car. The e2o, in its previous avatar as the Reva, was sold in the UK in 2004 as the G-Wiz. M&M acquired a majority stake in Reva Electric Car Company in May 2010, and later renamed it as Mahindra Reva Electric Vehicles.

The carmaker recently displayed the e2o Sport and the E-Verito at its Auto Expo 2016 stall.

Amit Panday