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Tata Motors beats Mahindra to secure order from Indian Govt. for 10,000 electric cars

In what is termed as the largest such procurement anywhere in the automotive world, Tata Motors Limited has bagged an order worth INR 1,120 crores to supply 10,000 electric vehicles to Energy Efficiency Services Limited (EESL). Under the administration of Ministry of Power, Government of India, EESL will receive 10,000 Tata Tigor electric cars in two phases.

The first phase will include 500 Tata Tigor EVs and 9,500 such vehicles will be supplied in the second phase. This will lay the foundation for National Democratic Alliance government’s initiative to introduce all electric vehicles by 2030.

Tata Motors outbid Mahindra in getting this contract worth INR 1,120 crores. It was believed, Mahindra being at the forefront of electric vehicles in India, they would bag this order. But that has not happened.

Tata Motors was selected as the winner via a global bidding process aimed at increased participation. Tata Motors works along with Jaguar Land Rover in the development of electric powertrain options. This allowed the company to bring in an electric vehicle despite not having an electric vehicle in the Indian market as on date. The Tata Tigor electric vehicle has been developed at Tata Motors European Technical Centre in collaboration with the local R&D centre.

Three automakers that quoted in this tender which included Tata Motors, Mahindra and Mahindra and Nissan Motor Co Ltd. Nissan did not qualify as they did not clearly indicate which product they were offering. Tata Motors quoted the lowest price at INR 10.16 lakhs exclusive of GST and the Tata Tigor compact sedan will be supplied to EESL at INR 11.2 lakhs inclusive of GST along with a 5 year warranty at 25% lower than the current retail price of a similar electric vehicle with a 3 year warranty.

Management Speak

Welcoming the initiative of EESL, 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.”

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