UK electric vehicle start-up Arrival is putting its bus and car projects on hold as it seeks to slash costs by a third and focus on the production of its debut van to generate revenues, just over a year after it went public on Wall Street. The London-based company is delaying trials of its bus and pausing development work on its car project, according to three people familiar with the matter.

Forcing them to cut production targets, Arrival is one of more than a dozen new entrants to the motor industry listed by merging with a special purpose acquisition company within the past two years. But almost all of the new businesses have struggled while initiating vehicle manufacturing.

Its fall has coincided with a chilling of the global Spac market as interest rates rose and stock markets faltered. Arrival shares have lost more than 90 per cent of their value since the company was listed in March last year.

The company was founded to develop zero-emission vans and buses but has expanded into other segments in an effort to widen its appeal and tap into the growing global market for electric vehicles. Last year it announced plans to build a passenger car designed for ride-hailing and brought across senior Uber executive Tom Elvidge to help run the programme. The car, designed by Arrival in collaboration with the ride-hailing group, was due to enter production late in 2023, Arrival said at the time.

NHAI debt stands at a massive Rs 3.49 lakh crore

Hyundai Tucson Facelift 2022 India to launch soon

Amid volatile second half, BMW sees a full-year drop in output