EESL To Procure 250 Electric Vehicles From TATA Motors Limited & Hyundai Motor India Ltd

CIOReviewIndia Team | Thursday, 03 September 2020, 14:00 IST

EESL To Procure 250 Electric Vehicles From TATA Motors Limited & Hyundai Motor India LtdUnder the guidance of the Ministry of Power, Government of India, Energy Efficiency Services Limited (EESL), a Super Energy Service Company (ESCO) is set to produce 250 electric vehicles from Tata Motors and Hyundai Motor India. On the basis of the international competitive bidding process, the companies got selected, where Tata Motors and Hyundai Motor India Limited won the tender and is going to fulfil the required 150 Nexon electric compact SUVs and 100 Kona electric premium SUVs respectively for the government use. In front of Mr. Guenter Butschek, CEO & MD, Tata Motors, Mr. Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors and Mr. Tarun Garg, Director – Sales, Marketing & Service, Hyundai Motors India Ltd, the letter of award for the procurement was presented to Tata Motors and Hyundai Motors India Limited.

With this procurement, 5 million USD will get utilized, which was recently granted by the Asian Development Bank (ADB). ADB financed EESL for scaling up and for areas like Demand Side Energy Efficiency Sector Projects.

Mr. 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 a rapid establishment of EV charging stations, which will give a fillip to the electric vehicle sales, going forwards.”

Mr. Seon Seob Kim, MD & CEO, Hyundai Motor India Ltd, 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 the Indian market contributing towards the cleaner and greener environment.”

Mr. 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.”

EESL drives with the objective for facilitating faster adoption of disruptive technology solutions, simultaneously balancing economic development and environment sustainability. EESL’s initiative is predicted to create the market for electric vehicles using the unique business model of aggregation of demand and bulk procurement. For leveraging the immense potential of replacement of existing vehicles for the government department for initial demand aggregation.

EESL will procure Tata Nexon at INR 14.86 lakh each, INR 13,000 less cost than the ex-showroom price of INR 14.99 lakh. Hyundai Kona offering a higher range, will be procured at an 11 percent cheaper price band of INR 21.36 lakh, which includes a three-year warranty. The electric vehicles will be replacing the fleet of petrol and diesel vehicles of the Central and State Governments. EESL has already received an order of 300 Long Range EVs for the Agency for Non-Conventional Energy and Rural Technology (ANERT), Kerala. They will get the supplies in the initial phase.

While leveraging efficient scale and drive down costs using the innovative business model, EESL also plans to support the local manufacturing facilities, gaining technical competencies for a long-term growth of the EV industry and enabling Indian EV manufacturers and emerge as a major global player.