EESL to procure 250 electric vehicles from Hyundai, Tata Motors

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New Delhi (NVI): Energy Efficiency Services Limited (EESL) today announced that it will procure 250 electric vehicles from Tata Motors and Hyundai Motor India.

Both the companies have emerged winners in a tender and were selected through an international competitive bidding process, which was aimed at increased participation.

Out of total procurement, Tata Motors will supply 150 Nexon electric compact SUVs while Hyundai will supply 100 Kona electric premium SUVs respectively for government use.

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.

EESL will procure Tata Nexon at Rs 14.86 lakh each, just Rs 13,000 cheaper than its ex-showroom price of INR 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, 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.

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.”

“We’re also working on rapid establishment of EV charging stations, which will give a fillip to the electric vehicle sales, going forward,” Kumar added.

EESL is driven by the objective of facilitating faster adoption of disruptive technology solutions, while balancing economic development and environmental sustainability.

“The company seeks to create the market for electric vehicles, through its unique business model of aggregation of demand and bulk procurement. It is also seeking to leverage the immense potential of replacement of existing vehicles in the government departments for initial demand aggregation,” EESL said in a release.

“The company 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,” it added.

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,” he added.