M&M matches Tata Motors’ bid for electric vehicle order
MUMBAI: Mahindra & Mahindra Ltd has matched the lower bid made by Tata Motors Ltd for supplying electric vehicles (EVS) to the state-run Energy Efficiency Services Ltd (EESL), winning 30% of the marquee order.
Mahindra will supply 150 of the 500 EVS to be delivered in the first phase, by 30 November. The timeframe for the second phase has not yet been announced.
“The purchase orders for supply of 9,500 electric vehicles in phase II will be issued on completion of phase I deliveries,” EESL said in a statement. “Both qualified parties, Tata Motors and Mahindra, will have the opportunity to supply their respective number of vehicles, as per the terms of the tender and Mahindra matching the lowest bid pricing for phase II.”
Tata Motors had won the government contract for supplying 10,000 electric cars, outbidding Mahindra & Mahindra in the contest for the ₹1,120 crore order, the largest such procurement anywhere in the world, Mint reported on September 30.
Tata Motors quoted the lowest price of ₹10.16 lakh exclusive of the goods and services tax in the competitive bidding. The vehicle will be provided to EESL for ₹11.2 lakh which will be inclusive of GST and comprehensive 5-year warranty, which is 25% below the current retail price of a similar e-car with 3-year warranty, according to EESL
The tender is part of the government’s agenda for a universal shift to EVS by 2030. “The electric vehicles procured under the current tender will be used to replace petrol and diesel cars currently used by the central government and its agencies over a 3 to 4-year period”, the statement said.