Tata Motors Wins Bid To Supply 10,000 Electric Vehicles

Energy Efficiency Services Limited (EESL) will procure 10,000 electric vehicles from Tata Motors Limited in what will be the world’s largest electric vehicle procurement.

Tata Motors was selected through international competitive bidding. Three leading manufacturers – Tata Motors Limited, Mahindra & Mahindra and Nissan had participated in the tender.

Now selected, the company will supply the electric vehicles in two phases – 500 e-cars in November 2017 and the rest 9,500 in the second phase, for which dates are yet to be announced.

The vehicles will be supplied at Rs 11.2 lakh per unit, inclusive of GST and a comprehensive five-year warranty, which is 25 per cent below the current retail price of a similar e-car with a three-year warranty.

This is a significant step for the government en route to achieving its dream of having ‘only electric cars by 2030’.

The GST Council earlier set a 12 per cent tax for electric vehicles – a clear indication of the government’s resolve to transition to e-cars. Petrol and diesel cars on the other hand have over 28 per cent cess applicable on them.

According to a NITI Aayog report from May this year, making India’s passenger mobility shared, electric and connected can cut its energy demand by 64 per cent and carbon emissions by 37 per cent by 2030, resulting in a net savings of roughly Rs 3.9 lakh crore in 2030.

The shift to electric vehicles will reduce India’s dependence on oil imports and promote power capacity addition within the country, thereby enhancing India’s energy security.

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