Mahindra Seeks to Ride the Electric Car Wave in UK with e2o

Remember the e2o from Mahindra? Yes, the same car that is considered the successor to the most famous electric car of India that was made by Reva. There was a point of time when Reva and its products were about to disappear. However, utility vehicle maker Mahindra & Mahindra acquired Reva just in time to ensure there would always be an electric car that is made in India. Hence, the e2o was born.

Gone were the funny looks of the Reva-made electric car and in was a car with a fresh new design. The new design made it look less like a clown's ride and more geared towards young drivers. This new car called ‘e2o’ was launched in 2013 in the Indian market. However, it has been met with slow demand since its launch due to lack of charging stations and its cost. Government subsidies to the tune of Rs 1,38,000 helped Mahindra report sales of 1,000 in 2013-2014 fiscal.

Not to be kept down by disappointments, Mahindra decided to take the e2o to Europe where, according to European Automobile Manufacturers' Association, electric vehicles sales more than doubled in 2015. Mahindra launched the e2o in UK in April 2016 as the Reva-made electric car was quite popular there. This was the first planned electric car launch from Mahindra, with another one to follow in 2016. The successor to the Reva-made car, however, is more than metal on four wheels. It meets EU crash standards, something the Reva-made car did not, and was consequently made fun of by a popular publication too.

But now, the cost is a prohibitive factor for e2o's success. Converted to Indian currency, the e2o costs close to Rs 1,600,000 in the UK. Surely, the government subsidy will bring down the cost but not by much, restricting its appeal to a few buyers. However, if Mahindra executives are to be believed, they have long-term plans for the UK market. The executives feel the car would become cheaper as the costs of battery technology come down, which is what they wish to exploit.

In its home market, Mahindra has launched the eVerito, the electric version of the Verito sedan. While it hopes to reach out to more users with this car, the head of the company Anand Mahindra feels that since no one wants to call electric vehicles the future of automobiles outright, options need to be created to change the mindset.

While Mahindra would want the eVerito to become a popular choice in India, it would be more interested to see how the e2o does in a market that had been overly critical of its predecessor. We, for one, would be keeping an eye on the developments too.