Tata Motors raises Rs 1120 crore order from Energy Efficiency Services Ltd (EESL) for procuring 10,000 electric cars, which will replace diesel and petrol cars used by government and its departments, an effort to cut fuel consumption and reduce pollution.
Tata Motors will 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, EESL said in a statement.
The bidding around also saw participation from Mahindra & Mahindra (M&M) and Japanese carmaker Nissan. Mahindra & Mahindra, the other contender, can win part of the order if it matches the bid by Tata Motors.
“The vehicle will be provided for Rs 11.2 lakh, which will be inclusive of GST and comprehensive 5-year warranty which is 25 per cent below the current retail price of a similar e-car with 3-year warranty,” the statement read.
EESl, which comes under the Ministry of Power, further said along with procurement of 10,000 EVs through bidding, it would also identify a service provider agency.
Welcoming the EESL initiative, Guenter Butschek, CEO & MD, Tata Motors said:
“Tata Motors is extremely proud to partner with the Government of India in its journey to facilitate faster adoption of electric vehicles and to build a sustainable India. 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 full range of electric vehicles to the Indian consumers.”