India's Mahindra and Mahindra has stopped selling electric cars in the UK due to weak sales and is winding up operations here, according to Reuters.

This is less than a year after Mahindra launched the e2o car in the UK – which it saw as a launch pad for selling EVs in other European countries such as Norway, Sweden and the Netherlands.

Communications to suppliers seen by Reuters said the level of e2o sales achieved was at an "untenable level" to maintain the investment required. Documents added that Mahindra UK had cease to trade.

It also said Mahindra has stopped the sale of all e2o cars in Britain with immediate effect, cancelled all pending orders and is buying back cars from existing customers at the price they paid.

A Mahindra spokesman told Reuters the e2o had not met the desired sales targets in UK although the company would reconsider the market "at an opportune time", adding that EVs were poised for take off in India so Mahindra would focus on its home market.

Mahindra has struggled to make an impact in other markets, including the US and Brazil, although its South Korean unit Ssangyong Motor is beginning to flourish and is considering manufacturing in China.

Reuters noted Mahindra had launched two variants of the e2o car in the UK in April last year at a starting price of GBP12,995 (US$16,793).

Buyers could test drive the cars at a small number of locations but the vehicles were only sold online.