Energy Efficiency Services Limited (EESL) on Friday said that it will procure 10,000 electric vehicles from Tata Motors after the latter emerged as the lowest bidder in a competitive bidding process.
Tata Motors, Mahindra & Mahindra (M&M) and Japanese carmaker Nissan had all bid for the EESL contract to provide 10,000 electric vehicles over the next 12 months.
Tata Motors quoted the lowest price of Rs 10.16 lakh, exclusive of GST, in the bidding process. The vehicle will be provided to EESL for Rs 11. 2 lakh, which will be inclusive of GST and a comprehensive 5-year warranty. At this price, the car will cost 25 percent less than the current retail price of a similar e-car with a 3-year warranty.
According to media reports, the first phase will see the delivery of 500 electric cars over a three-month period. The second phase will see 9,500 electric cars delivered in nine months.
The report said that the company selected to provide the cars to EESL will not have to spend on launches, advertisements or other promotional activities, thereby enabling bidders to bid lower than they would have done otherwise.
EESL is a joint venture between government entities National Thermal Power Corporation (NTPC), Power Grid, Power Finance Corporation, and Rural Electrification Corporation. It had floated the tender on August 15.
