GenZe is a California-based manufacturer of electric bicycles and scooters owned by Mahindra & Mahindra. The electric two-wheeler company will be shut down in 6 months.
Mahindra & Mahindra has announced that the US-based wholly-owned subsidiary, GenZe - whose name is derived from ‘Generation Zero Emissions’, will be shut down. It is in the process of liquidating stocks of GenZe and plans to dissolve that business within 6 months. The intellectual property of GenZe will be used by Mahindra Electric or some other body within the Mahindra Group.
GenZe provides electric bicycles and electric scooters on a public sharing system in the USA. GenZe electric scooters are also used for delivery services in California. In fact, Mahindra was previously considering introducing GenZe electric scooters in India. Last year, the GenZe 2.0 was even spotted testing in our country. It has several variants available in the USA which offer features such as an adjustable seat, front storage area, lower handlebars, hard-case lockable storage compartment and an electronically locking centre kickstand for added security.
In other news, Mahindra & Mahindra has revealed its financial results for the fourth quarter of the FY 2019-20. The company has suffered a net loss of INR 3,255 crore in the Jan-Mar period this year, whereas, in the same quarter in 2019, it had made a profit of INR 969 crore. It is in the process of taking corrective actions for all major loss-making businesses, including shutting them down if required.
Revenue of one of the largest vehicle manufacturers in the country also dropped by 35% - from 13,808 crore in Jan-Mar 2019 to INR 9,005 crore in Jan-Mar 2020. Mahindra and Mahindra also said that sales have also been affected because of the transition to BS6 emission regulations and the COVID-19 crisis. The industry volumes in both the automotive and tractor segments have been lower as well.