Tata Motors, Hyundai win EESL order for 250 electric vehicles

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 electric vehicles will replace a select fleet of petrol and diesel vehicles of the central and state governments.

Energy Efficiency Services Limited (EESL), a super energy service company (ESCO) under the administrative control of the ministry of power, will procure 250 electric vehicles from Tata Motors and Hyundai Motor India. 

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 utilise $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.

“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,” Saurabh Kumar, executive vice chairperson, EESL, said.

“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,” Seon Seob Kim, MD & CEO, Hyundai Motor India Ltd, 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,” Shailesh Chandra, president, Passenger Vehicle Business Unit, Tata Motors, said.

With this 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 Rs14.86 lakh each, Rs13,000 cheaper than its ex-showroom price of Rs14.99 lakh whereas, Hyundai Kona, which offers a higher range, will be procured at an 11 per cent lower price band of Rs21.36 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 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.