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 and 100 Kona electric premium SUVs respectively for government use, EESL said.
EESL will procure Tata Nexon at Rs 14.86 lakh each, Rs 13,000 cheaper than its ex-showroom price of Rs 14.99 lakh whereas, Hyundai Kona, which offers a higher range, will be procured at an 11% lower price band of Rs 21.36 lakh and with a standard three-year warranty.
The companies will supply 150 Nexon #electric compact SUVs & 100 Kona #electric SUVs respectively for government us… https://t.co/ktTmeNAIwG
— EESL India (@EESL_India) 1599125771000
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 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.
EESL said electric cars will cost Rs 0.90 per kilometre as compared to Rs 5-6 per kilometre for ICE vehicles, which will lead to a saving of up to Rs 9.22 lakh over the lease period.
Similarly, using of electric cars will help in reduction of emission and noise pollution, EESL said.
MG Motor, however, lost out of the bidding race. MG Motor, a subsidiary of China’s Shanghai Automotive (SAIC), stood disqualified for e-vehicles tender in the absence of an official clearance by a panel comprising officials from the department for promotion of industry and internal trade (DPIIT), and home and external affairs ministries.