Tata Motors Ltd., has won an order from the Indian Government for 10,000 electric cars as the country makes efforts to reduce emissions and curb fuel imports. The motto is definitely quite thought provoking! The legendary Tata Motors will initially supply 500 vehicles to government-backed Energy Efficiency Services Ltd., tentatively in November while the remaining 9,500 autos is expected to be delivered in the second phase. Tata Motors is aiming at enhancing productivity in Indian market through its unique business model of aggregation of demand and bulk procurement.
Further information –
- As per the plan, the electric cars will replace petrol and diesel vehicles used by the federal government and its agencies over a period of three to four years.
- Those agencies are mainly operating a bulk of about 500,000 vehicles.
- It is an initiative taken in order to ensure that by 2030 almost all vehicles in India will be powered by electricity as a way to curb or combat oil imports and reduce air pollution.
- The notable carmakers of the country which include Mumbai-based Tata Motors and New Delhi-based Maruti Suzuki India Ltd., are considering making electric vehicles for the $30 billion auto market.
- Besides the procurement of 10,000 EVs, EESL is also supposed to identify a service provider agency.
- Apart from continuing to aggregate demand, EESL will also be responsible for quite a few activities that include co-ordination between appointed agencies, monitoring along with supervision, reporting, complaint redressing and payments.
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Tata Motors has expressed their gratitude to the Indian Government and is extremely honored to be partner with the Government of India in its journey to undertake faster adoption of electric vehicles and to build a sustainable India. This is indeed a noble cause. Tata Motors has been collaboratively working to develop electric power-train technology for its selected products. EESL tender provided us the opportunity to participate in boosting e-mobility in the country. Besides this, the same thing will actually accelerate their efforts to offer full range of electric vehicles to the Indian consumers. Tata Motors have sent their quotation of the lowest price of Rs. 10.16 lakhs which doesn’t include GST in the competitive bidding. The vehicle will be provided to EESL for Rs. 11.2 lakhs including the GST and with comprehensive five-year warranty. This is claimed to be 25 percent below the current retail price of a similar electric car with 3-years warranty.
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Tata Motors will most probably be working on electric variant of its two entry-level cars namely, the Nano and Tiago. The company is offering a comprehensive five-years warranty on the e-Tigor, while the warranty on eVerito is for three years respectively. Tata Motors is planning to sell electric cars in the open market as well. The tender or the contract has mainly provided Tata Motors a golden opportunity to participate in boosting and encouraging e-mobility, and at the same time, enhance their market boundary to the Indian consumers. The other two participants were Mahindra & Mahindra and Nissan. Nissan did not qualify the technical bid stage.