The state-run Energy Efficiency Services (EESL), a Super Energy Service Company (ESCO) under the administrative control of Ministry of Power, government of India has announced it will procure 250 EVs from Tata Motors and Hyundai Motor India.
The companies were selected through an international competitive bidding process, which was aimed at increased participation. The tender was won by Tata Motors and Hyundai Motor India, which will see the OEMs supplying 150 Nexon and 100 Kona SUVs respectively for government use. The letter of award for the procurement was presented to the two companies, in the presence of Guenter Butschek, CEO and MD, Tata Motors; Shailesh Chandra, president, PVBU, Tata Motors and Tarun Garg, Director – Sales, Marketing & Service, Hyundai Motor India.
EESL’s 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.
Shailesh Chandra, president, PVBU – 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.”
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.”
Seon Seob Kim, MD and CEO, Hyundai Motor India, 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.”
EESL says it 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.
As per the tender, 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 percent lower price band of Rs 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 initial phase.