Mahindra has pulled the plug on its electric cars business in the UK. Just a year ago, the company had launched its two-door Mahindra e2o electric hatchback there to replace the G-Wiz, which was known as Reva in India. According to Reuters which first reported the development, Mahindra has stopped the e2o's sales with immediate effect and has cancelled all pending orders; it is even buying back the cars from its customers.

Mahindra says that low sales volumes made it untenable to continue with investments for the UK operations, according to the Reuters report. The devaluation of the pound sterling post-Brexit too has had an impact on Mahindra's e2o sales.

Launched in April 2016, the UK edition of the e2o came in two trim levels with the top trim getting features like an infotainment system, leather seats, airbags, ESP and inbuilt navigation with plotted charge points. A 13.5kWh battery pack powered the e2o's electric motor which gave a peak output of 43hp and 91Nm and a promised range of 127km. The UK Mahindra e2o was substantially more powerful than the India-spec model available at that time.

In the UK, Mahindra used online marketing and sales channels to sell the Mahindra e2o which helped it reduce costs. The carmaker also carried out 90 percent of its vehicle maintenance – mostly servicing – at owners' homes. At the time of launch, the Mahindra e2o was one of the cheapest electric cars in the UK market, and certainly substantially cheaper than many luxurious brands, like Tesla and BMW. All Mahindra e2os were exported from Mahindra Electric’s factory in Bengaluru.

In October 2016, the Mahindra e2o was replaced in India with a four-door model called the Mahindra e2o Plus. However, sales continue to be sluggish mainly due to its high price and the lack of electric charging points in the country. 

Source