Owing to the growing global pollution and climate change concerns, electric car development market is witnessing a substantial growth lately. Adoption of electric vehicles has increased, thus various technology firms across the world are increasingly working to gain a foothold in the developing market. However, few firms have also witnessed a loss while trying to get into the market.
One instance of this was observed when Dyson Ltd, a renowned British technology firm headquartered in Malmesbury, United Kingdom popularly known for its vacuum cleaners, announced that it has scrapped its plans of launching an electric car since it did not find a way to make the vehicle commercially viable.
CEO of Dyson, Sir James Dyson stated in an email that the firm scrapped the project since they did not find any buyer for the electric car.
The division has 500 employees in the United Kingdom.
The company had planned to invest over £2 billion to develop the “different and radical” electric car from a project the company had kicked off in 2016. The company claimed the car won’t be aimed towards the mass market.
Of the total investment made, the funds would now be spent on other products that are under development at the private company, which also includes a new electric battery technology.
Dyson stated in a company email that the scrapping of the project is neither a product failure, nor a team failure, who will find the announcement hard to hear and process. The team has made immense achievements – considering the complexity and enormity of the electric vehicle project.
The email also stated that the firm was trying to search as many alternative roles as it can for employees in its home division, where the company produces things like fans, hairdryers and vacuum cleaners.
Dyson had initially planned to launch its electric car in 2020. However, last year the launch was pushed ahead to 2021 after the firm announced that it would build a production plant in Singapore.
According to a Dyson spokesperson, plans for the Singapore production plant have been canceled.
The company had also planned to invest £200 million in the United Kingdom in R&D as well as test track facilities. Most of the invested money has already been used, however, Dyson stated that it would use this site for other projects.
Source credit: https://www.bbc.com/news/business-50004184