Mahindra e2o witnesses a slow start

Posted on: Apr 4, 2013 - 12:02pm IST

Mahindra has managed to make every single launch in the recent past a huge success but sadly that is not the case with its latest release, the Mahindra e20.

Mahindra Reva E2O frontMahindra Reva E2O rear fascia

The electric hatchback which was developed by Mahindra Reva Electric Vehicles comes with an eye watering price tag. The company expected a conducive subsidy plan for electric vehicles but there was no support from the government.

The car is priced at Rs. 5.96 lakhs (on road Delhi after the state government’s subsidy). However most of the other states doesn’t offer any kind of subsidy to EVs and that means the e20 costs not less than Rs. 8 lakhs elsewhere!

Mahindra attempts to convince customers by claiming that the e20 will save Rs. 4 lakhs every 5 years when compared to a petrol hatchback owing to low running and maintenance costs. However the expensive battery pack needs to be replaced every 5 years and the car losses out when compared with a diesel hatchback.

On the sidelines of the CII annual conference, Dr. Pawan Goenka, President of Mahindra’s automotive and farm equipment sector admitted that the initial response for the two door electric vehicle has been disappointing. Mahindra hopes to sell around 300-400 units of the e2o every month but it seems the numbers in the first month (no official figure has been released yet) is nowhere near the estimation.

[Source: Rushlane.com]

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3 thoughts on “Mahindra e2o witnesses a slow start

  1. sandy says:

    Rs. 8 Lakhs, Elsewhere!?
    State Government’s subsidy is little more then 2 Lakhs at Delhi; what kind of subsidy was expected from Center? How much it would have cost after State and Central Government subsidies?

    Reply
    1. Mohammed says:

      ” Mahindra has managed to make every single launch in the recent past a huge success ” > Personally feel this is an overstatement which we make time again and again ๐Ÿ™‚ ๐Ÿ™‚

      a) The LOGAN failed to take off despite the alliance with Renault and the VERITO still struggles big.

      b) The XYLO was proclaimed to trigger the end of the Sedan era, but it remained a problem child for ever with serious engineering issues, which M&M could never fix. It averages around 1500 units a month just like the age old Tavera.

      c) QUANTO, a quick fix mini SUV made out the MUV parent is facing a certain death too with March sales dipping below 2k mark barely after 6 months in the show.

      d) And the E2O, hardly made any right noises, if sales numbers cross double digits, it should be magical.

      M&M is still mostly dependent on the old village hero Bolero (which clocks more than 10,000 units a month) and Scorpio, launched a decade ago, for its numbers.

      The only successful recent product from M&M is the XUV500, which impressed most with its design elements. Even for the XUV500, the sales are consistently showing a negative trend for the last 4 months, thanks to poor ownership reports, constant niggles,recall actions and stuff. Duster is consistently hitting the 5k mark with ease though.

      Reply

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About the Author
Nithyanandh
Nithyanandh K

As a toddler, those wheeled machinery fascinated me even before I knew what theyโ€™re called as! So here I'm, petrolhead by birth, Mechanical engineer by qualification and automotive reporter by profession!