Tata Motors Win Rs 1,120 crore order for supplying 10,000 Electric Car

Tata Motors emerged as the lowest bidder in the tender floated by Energy Efficiency Services Ltd (EESL), a joint-venture comprising four government-owned power sector entities — NTPC, Power Grid, Power Finance Corp and Rural Electrification Corporation. It was the world’s single-largest tender for procurement of e-vehicles, stated the government.

Under the tender it will sell 10,000 electric variants of the Tigor, its sedan car. Priced at Rs 10.16 lakh, it will be the company’s first electric car, supplies of which will begin in November. All the cars will be supplied by October next year.

Tata Motors quoted the lowest price for the vehicles, which will be supplied at Rs 11.2 lakh each, inclusive of the goods and services tax and a five-year warranty. The price bid by Tata Motors is 25% lower than that of a similar electric vehicle with a three-year warranty

“Tata Motors won the tender and will now supply the electric vehicles in two phases. The first 500 electric vehicles will be supplied in November and the remainder will be delivered in the second phase, Energy Efficiency Services Ltd (EESL), an arm of the ministry of power, said in a statement.

There were three players who bid for the tender. Tata Motors bid the lowest and will be given 60% of the order. Nissan was disqualified because it did not provide details of what it was offering.

Mahindra has been asked to reconsider their bid and match or lower their cost. If they agree on lower prices, they will be given the remaining 40% order or else the entire order will go to Tata Motors.

India plans to replace its petrol and diesel-run vehicles with an all-electric fleet by 2030.