Energy Efficiency Services Limited (EESL), a Super Energy Service Company (ESCO) under the administrative control of Ministry of Power, Government of India, will procure 250 electric vehicles from Tata Motors and Hyundai Motor India. The companies were selected through an international competitive bidding process, which was aimed at increased participation. Tata Motors Limited and Hyundai Motor India Limited won the tender and now will supply 150 Nexon electric compact SUVs & 100 Kona electric premium SUVs respectively for government use.
The letter of award for the procurement was presented to the two companies, in the presence of Mr. Guenter Butschek, CEO & MD, Tata Motors, Mr. Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors and Mr. Tarun Garg, Director – Sales, Marketing & Service, Hyundai Motor India Ltd.
This procurement will utilize 5 Million from the recent grant provided by the Asian Development Bank (ADB). EESL has received financing from ADB towards the cost of scaling up and financing high priority areas like Demand Side Energy Efficiency Sector Projects.
Mr. Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors, said, “Electric mobility is gaining ground in the country and partnerships such as these are pivotal for building the requisite momentum. We have been partnering EESL and are pleased to provide more EVs to them for government use, enabling a smooth and sustainable transition to a future-oriented mobility solution. As the leader of the fast-growing EV segment, Tata Motors is committed to popularising their access and use across India”
Mr. Saurabh Kumar, Executive Vice Chairperson, EESL said, “A shift to EVs, facilitated by our e-mobility programme will reduce dependence on oil imports and promote power capacity addition in India. This will greatly enhance the energy security of the country and will also lead to reduction in GHG emissions from the transport sector. Furthermore, we’re also working on rapid establishment of EV charging stations, which will give a fillip to the electric vehicle sales, going forward”
EESL is driven by the objective of facilitating faster adoption of disruptive technology solutions while balancing economic development and environmental sustainability. With this specific initiative, EESL seeks to create the market for electric vehicles, through its unique business model of aggregation of demand and bulk procurement. EESL is seeking to leverage the immense potential of replacement of existing vehicles in the government departments for initial demand aggregation.
EESL will procure Tata Nexon at INR 14.86 lakh each, INR 13,000 cheaper than its ex-showroom price of INR 14.99 lakh whereas, Hyundai Kona, which offers a higher range, will be procured at an 11% lower price band of INR 21.36 lakh and with a standard three-year warranty. These electric vehicles will replace the existing fleet of petrol and diesel vehicles of the Central and State Governments. EESL has already received an order for 300 Long Range EVs from The Agency for Non-Conventional Energy and Rural Technology (ANERT), Kerala to be supplied in the initial phase.
EESL plans to leverage efficiencies of scale and drive down costs through its innovative business model, while supporting local manufacturing facilities, gaining technical competencies for the long-term growth of the EV industry and enabling Indian EV manufacturers to emerge as major global players.