The Indian manufacturer grounded all four cars during qualifying; Nico Muller, Oliver Rowland, Lucas di Grassi and Kelvin van der Linde did not leave the garage at any point as Mahindra assessed its options to determine if it could take part.
It was later confirmed that Mahindra would not continue with the weekend in Cape Town, citing that it had concerns about the integrity of its rear suspension package - which it also supplies to the Abt squad as part of its associated powertrain deal.
"Mahindra Racing Formula E team have confirmed their withdrawal from the ABB FIA Formula E World Championship qualifying sessions and race in Cape Town due to rear suspension safety concerns," the team stated on Twitter.
"A thorough investigation on the suspension elements of the Mahindra M9Electro race cars will take place on the team’s return to the UK. This decision also affects their customer team Abt Motorsport.
"The safety of our drivers and extended teams is of utmost importance."
Abt published an identical statement, and the withdrawal of both teams means that a maximum of 18 cars will take to the start of the inaugural race in Cape Town.
This is a bitter blow to van der Linde, who had been the focus of local attention ahead of his home race in South Africa.
The team contended with suspension issues during the opening practice session, with van der Linde and di Grassi both coming to a stop at the end of FP1.
Di Grassi stated over the radio that his rear suspension had broken, but was able to pull up at the Turn 4/5 chicane amid a red flag brought out for the stranded van der Linde, who had come to a halt at Turn 7.
Mahindra is currently seventh in the teams' championship with 26 points, courtesy of di Grassi's third place in Mexico and a sixth-placed finish for Rowland in Hyderabad.
Abt, meanwhile, has been so far unable to get off the mark having started the season behind its rivals - as van der Linde was due to continue his cover for the injured Robin Frijns.
Source: Autosport