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.
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.