M&M matches Tata’s bid for EESL’s e-vehicle order

State-run Energy Efficiency Services Limited (EESL) today announced it has completed the process for phase 1 of its tender to procure 10,000 electric vehicles with Mahindra & Mahindra (M&M) matching the lowest bid price quoted by Tata Motors. This follows EESL’s offer of 40 per cent of the order if the company matched the former’s bid.

Under the largest auction of 10,000 electric cars held last week M&M will supply 150 vehicles in the Phase 1. In Phase 2, 9,500 vehicles will be ordered post Phase 1 deliveries.

In all, EESL will source 150 electric vehicles from Mahindra & Mahindra in phase I and 250 vehicles from Tata Motors. The delivery date of electric vehicles for phase I is 30 November, 2017.

The purchase orders for supply of 9,500 electric vehicles in phase II will be issued on completion of phase I deliveries. 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.

As per the tender conditions, M&M can supply up to 40 percent of the order. But M&M have agreed to supply 30 percent of the order of 500 electric cars in Phase-1. Thus they would supply 150 cars and Tata Motors would supply the remaining 350 cars.

These electric vehicles are expected to replace petrol and diesel cars currently used by the central government departments over 3-4 years.