Tata Motors wins 10,000 electric cars for Indian government

Tata Motors Limited won the bid to supply 10,000 units electric cars in a program to remove traditional cars in government agencies. Energy Efficiency Services Limited (EESL) on Friday announced Tata Motors emerged as the lowest bidder in the tender process to provide electric vehicles within the next 12 months.

Tinuku Tata Motors wins 10,000 electric cars for Indian government

Tata Motors, Mahindra & Mahindra and Nissan have bid for EESL contracts. Tata Motors quotes the lowest price in its offer at Rs 10.16 lakh per unit, excluding taxes. Vehicles will be provided for EESL for Rs 11.2 lakh which will include GST and 5 year warranty or 25% lower than the regular retail price with 3 year warranty.

"Tata Motors is very proud to work with the Government of India to facilitate the adoption of electric vehicles and build India. Tata Motors has been working together to develop electric powertrain technology for selected products," said Tata Motors CEO Guenter Butschek.

"The EESL auction gives us the opportunity to participate in improving environmentally friendly mobility in the country, while accelerating our efforts to offer a wide range of electric vehicles to Indian consumers," said Butschek.

The first phase is 500 units over a three month period and the second phase is 9,500 units to be shipped in nine months. Tata Motors says the company does not need to pay for any launch, advertising or other promotional activities that allow to bid very low prices.

EESL is a joint venture by National Thermal Power Corporation (NTPC), Power Grid, Power Finance Corporation, and Rural Electrification Corporation. The consortium aims to lease electric cars to various government departments.

EESL said electric and connected mobility would reduce the country's energy demand by 64 percent and carbon emissions by 37 percent by 2030. Union Road Transport Minister Nitin Gadkari said the government would punish the auto industry if it did not switch to electric vehicles.