Tata Motors wins ₹1,120-cr govt order for 10,000 e-cars
Tata Motors Ltd has won a marquee government contract for supplying 10,000 electric cars, outbidding Mahindra & Mahindra Ltd in the contest for the ₹1,120 crore order, the largest such procurement anywhere in the world.
The vehicles will be procured by state-owned Energy Efficiency Services Ltd (EESL) at a per-unit price of Rs11.2 lakh and will lay the foundation for the National Democratic Alliance government’s ambitious plan for a mass shift to electric vehicles (EVs) by 2030.
“Tata Motors Limited quoted the lowest price of ₹10.16 lakh exclusive of GST (goods and services tax) in the competitive bidding. The vehicle will be provided to EESL for Rs11.2 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,” the government said in a statement.
These e-cars will be procured in two phases; 500 will be supplied in November 2017 and the remaining 9,500 cars in the second phase.
“Three companies had sent their bids yesterday. Nissan (Motor Co. Ltd) could not qualify for the bid as they could not indicate what product they are going to offer,” said Saurabh Kumar, managing director of EESL.
“Tata Motors has been collaboratively working to develop electric powertrain technology for its selected products. EESL tender provided us the opportunity to participate in boosting e-mobility in the country, at the same time accelerate our efforts to offer a full range of electric vehicles to the Indian consumers,” Guenter Butschek, managing director and chief executive officer at Tata Motors, said in a statement.
Mint reported about the EV leasing plan by the government, its agencies and state-owned firms on 15 April.
Tata Motors will be supplying the electric variant of the Tigor compact sedan as part of the contract, said a Tata Motors executive, requesting anonymity. “Each phase has three variants -base, mid and high. Tata Motors was the lowest bidder for all the three,” the executive added.