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M&M Says Price Quoted By Tata For Electric Cars Is ‘Hard To Comprehend’

M&M Says Price Quoted By Tata For Electric Cars Is ‘Hard To Comprehend’

Mahindra & Mahindra, the sole maker of electric cars says the bid by rival Tata Motors which it bid in the contract with Energy Efficiency Services (EESL) is too low.

“We find the price (quoted by Tata Motors) hard to comprehend,” Mahindra managing director Pawan Goenka said.

Last week, Tata Motors offered to supply the electric vehicles at Rs 11.2 lakh each, inclusive of the GST and a five-year warranty. Mahindra quoted more than Rs 13 lakh and subsequently agreed to match the bid by Tata Motors to win part of the order. The tender was for 10,000 vehicles.

Tata Motors earlier was supposed to supply the electric vehicles (EVs) in two phases– 500 e-cars in the first phase in November 2017 and the remaining 9,500 EVs in the second phase. But now, since M&M has qualified, it will supply 150 EVs in the first phase along with Tata, which will now supply 250 instead of 500. While he details on the remaining 100 in phase one will be revealed at a later date.


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Mahindra, though, will not be making any money on its supplies. While acknowledging that he was unaware of the basis of the bid by Tata Motors, Goenka said several factors could have been at play.

“Our product is larger… our specifications go beyond stipulated requirements,” Goenka said. Mahindra makes two electric cars — the e20 hatchback and the e-Verito sedan.

Tata Motors said it “would not like to comment on the specific questions” about the bid price.

 


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