Mahindra To Shut Down Loss Making GenZe EV Brand
The Indian automaker is in the process of liquidating GenZe stocks, business to shut down completely in 6 months.
Mahindra GenZe EV brand is based in California, United States. The brand offers a range of electric two-wheelers only for the US market. Now after incurring huge losses from the international subsidiaries, Mahindra has decided to shut the brand.
The Indian automaker is in the process of liquidating GenZe stocks. The operations will completely shut down in the next 6 months of time. Dr. Pawan Goenka, Managing Director at Mahindra revealed this news while announcing the company’s 4th quarter results.
While the electric brand GenZe is dissolved, the electric technology might be used by Mahindra Electric products. The Indian company was already working on 2 new electric 2-wheelers specifically for the Indian market.
The upcoming EVs are expected to be introduced by next year. Currently, the e-scooter segment is getting quite competitive with the likes of Bajaj Chetak, TVS iQube, Ather and the likes.
Mahindra is also looking for investors for SsangYong. They have already stopped further investments in the South Korean company. Mahindra claims, 80 percent of their losses are coming from the international subsidiaries.
The company will scrutinise all their international businesses. Entities with 18 percent return on investment will run normally.
With discontinuing the 2-wheeler electric subsidiary in US and looking for new investors in SsangYong, Mahindra is cutting costs to concentrate on their domestic business. There has been a loss of Rs. 2719 crores from their international subsidiaries.
The COVID-19 crisis has hit the automakers very hard, not only locally but internationally as well.