State-owned Energy Efficiency Services Limited (EESL) has been procuring 250 electric vehicles (EVs) from auto giants Tata Motors and Hyundai Motor India. Both the companies had won the tender and now will supply 150 Nexon electric compact SUVs and 100 Kona electric premium SUVs respectively for government use.
September 03, 2020. By Manu Tayal
State-owned Energy Efficiency Services Limited (EESL) has been procuring 250 electric vehicles (EVs) from auto giants Tata Motors and Hyundai Motor India.
The two companies were selected through an international competitive bidding process, which was aimed at increased participation. Both the companies had won the tender and now will supply 150 Nexon electric compact SUVs and 100 Kona electric premium SUVs respectively for government use.
Speaking on the development, 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 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.”
The letter of award for the procurement was presented to the two companies, in the presence of Guenter Butschek, CEO & MD, Tata Motors, Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors and Tarun Garg, Director – Sales, Marketing & Service, Hyundai Motor India Ltd.
This procurement will utilize USD 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.
“Guided by our vision ‘Progress For Humanity’, we have been developing eco-friendly and human centric technologies that provide the best experience for our customers. As a caring and responsible brand, it is our privilege to align with the government’s goal for clean energy and collaborate with all stakeholders to create a sustainable ecosystem for electric mobility. Hyundai will continue to bring world class eco-friendly products and technologies for Indian market contributing towards the cleaner and greener environment,” said SeonSeob Kim, MD & CEO, Hyundai Motor India Ltd.
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 popularise their access and use across India.”
Moreover, EESL will procure Tata Nexon at Rs 14.86 lakh each, which is 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 per cent lower price band of Rs 21.36 lakh and with a standard 3-year warranty. These electric vehicles (EVs) 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.
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