Mahindra still stands a chance to get a slice of EESL’s EV pie

Mahindra & Mahindra may not have emerged as the best bidder for Energy Efficiency Services Ltd’s (EESL) global tender for 10,000 electric vehicles (EVs), but it has not missed the bus yet.

As is known, EESL announced Tata Motors as having won the order, which incidentally is the world’s single-largest tender for EVs. Tata, M&M and Nissan Motor Company had bid for the large order.

While Nissan did not qualify at the technical bidding stage, it was Tata Motors, which clinched the deal with a Rs 11.2 lakh quote (inclusive of GST) for the electric version of one of its models, along with a five-year warranty. As Autocar Professional revealed on September 30, the car is the electric version of the Tata Tigor compact sedan.

Now, it is learnt that EESL is still open to giving a noticeable share of the 10,000 unit order to M&M, if it matches Tata Motors’ price. Speaking to Autocar Professional, Saurabh Kumar, MD, EESL, said, “If M&M matches the price as quoted by Tata Motors, there is still a possibility of procuring 40 percent of the total order volume from Mahindra.” 

EESL’s 10,000-EV order is to be supplied in two phases, with the first lot comprising 500 vehicles scheduled to be delivered in November 2017. The balance 9,500 EVs will be procured in CY2018, and M&M holds a chance to supply 4,000 of them then.

The price offered by Tata Motors, the country’s fifth largest carmaker with a market share of 4.94 percent (August 2017), is being adjudged as being up to 25 percent better than a similar EV, with a three-year warranty, clearly hinting towards Mahindra’s existing eVerito.

The tender document allows maintaining a 60:40 procurement split between the initially winning bidder and the second contender, if it revises the quote and matches other’s price.

Vehicle testing and supply
It is only when the first lot is delivered completely that the procurement of the remainder 9,500 cars will begin, and is estimated to go well beyond into the next calendar year.

However, prior to commencement of supply, the cars will be subjected to testing at IIT Madras. While it is clear that the electric Tigor will be undergoing testing in the coming weeks, the eVerito’s choice will be decided by M&M’s viability to drop its quote and offer the car at Rs 10.16 lakh (exclusive of GST), as quoted by Tata Motors for the electric Tigor.

EESL will be sending out an invitation to M&M in the coming week of October, to come up with a revised quote. On receiving the invite, Mahindra will have 7-10 days’ time at hand to choose to accept the chance and send in a revised price for the eVerito. If this happens, EESL could be seen procuring up to 4,000 vehicles from the pioneer of EV technology in the country.

The eVerito comes powered by a 72V AC induction motor and generates 41bhp of power, also boasting fast charging capability in its top D6 trim. With fast charging, the eVerito can regain up to 80 percent battery charge within two hours. The car offers a total driving range of 100km on a single full charge and can achieve a top speed of 86kph.