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Abstract

On October 21st 2016, Mahindra Electric had launched e2o Plus, its new electric CitySmart car, at a starting price of INR0.54 million. This was a four-door four seater electric car, unlike its predecessor e2o, which was a two-door four seater car. The car could travel up to 140 km and could attain maximum speed of 85 kmph. There were four different models of the car available in India, namely, P2, P4, P6, P8 and among these models, the P2 model was launched for the commercial fleet owners. This car was launched despite the fact that the sales figures of the earlier car e2o were not satisfactory. The sales figures of the e2o had failed to meet the company's expectations due to higher pricing of the car and insufficient infrastructure such as charging points, customer incentives, and funding for research and development. Similarly, for the e2o Plus model, some analysts went to the extent of arguing that when electricity grids in India did not have the ability to supply electricity to every household, how could one expect them to power electric vehicles. Hence, according to them, India should at first work towards generation and transmission of sufficient power so as to make electric vehicles a viable alternative in the country. Secondly, some experts opined that, Indian consumers usually regarded cost as the primary factor than consumers located elsewhere. They were not very much interested in the benefits of a green car, nor did they consider it to be their sole responsibility to help in making the planet greener and this mindset of the people was unlikely to change quickly. Against this backdrop, whether the e2o plus model would be able to generate significant sales and enjoy dominance in India's electric car market remained a billion dollar question.
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2016

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Abstract

On October 21st 2016, Mahindra Electric had launched e2o Plus, its new electric CitySmart car, at a starting price of INR0.54 million. This was a four-door four seater electric car, unlike its predecessor e2o, which was a two-door four seater car. The car could travel up to 140 km and could attain maximum speed of 85 kmph. There were four different models of the car available in India, namely, P2, P4, P6, P8 and among these models, the P2 model was launched for the commercial fleet owners. This car was launched despite the fact that the sales figures of the earlier car e2o were not satisfactory. The sales figures of the e2o had failed to meet the company's expectations due to higher pricing of the car and insufficient infrastructure such as charging points, customer incentives, and funding for research and development. Similarly, for the e2o Plus model, some analysts went to the extent of arguing that when electricity grids in India did not have the ability to supply electricity to every household, how could one expect them to power electric vehicles. Hence, according to them, India should at first work towards generation and transmission of sufficient power so as to make electric vehicles a viable alternative in the country. Secondly, some experts opined that, Indian consumers usually regarded cost as the primary factor than consumers located elsewhere. They were not very much interested in the benefits of a green car, nor did they consider it to be their sole responsibility to help in making the planet greener and this mindset of the people was unlikely to change quickly. Against this backdrop, whether the e2o plus model would be able to generate significant sales and enjoy dominance in India's electric car market remained a billion dollar question.

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Location:
Industry:
Other setting(s):
2016

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