Tata Motors wins Rs 44 crore CESL contract for 300 EVs

Tata Motors, with its Nexon EV and Tigor sedan, was the No. 1 electric carmaker in India, in FY2021.

Tata Motors, which was the No. 1 electric car OEM in India in FY2021 with sales of 4,216 units and 64% of all-India sales, has just received a new order for its electric passenger vehicles. The first big one in FY2022.

Convergence Energy Services Ltd (CESL), a wholly owned subsidiary of Energy Efficiency Services Ltd (EESL) has placed a Letter of Award with the company to procure “300 electric cars with 3 years of warranty. This will consist of 300 four-wheeler electric cars (whose length is less than 4 metres) and range equal to or more than 250km.”

This contract is a part of the Scaling up Demand Side Energy Efficiency Sector Project financed by the Asian Development Bank line of credit to CESL. CESL says it will work with Tata Motors to deploy these vehicles to government entities looking to change over to electric vehicles.

Commenting on the partnership with Tata Motors, Ms Mahua Acharya, CEO and MD, CESL, said, “Electric vehicles are the future. I am so pleased that more and more Government entities in India are switching over to electric transport. Our association with Tata Motors is a good development for the future of mobility in India.  Convergence is committed to developing a flourishing electric vehicles ecosystem in the country.

Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors, said, “Tata Motors is committed to support the Government’s vision of actively embracing e-mobility and we are delighted to partner with CESL once again. Purposeful collaboration amongst stakeholders is key to accelerate the mass adoption of environmentally-friendly solutions. As the leader in the rapidly growing electric mobility space, we remain focused on ramping up the access and use of EVs across India.”

The total cost of tender is approximately Rs 44 crore. The tender will be implemented in two schedules. under the first schedule, 300 cars with 3 years warranty will be procured at a base price of Rs 14,33,000 per unit, exclusive of GST. The second schedule will involve inland transportation, including loading, unloading, transfer to designated location, transit insurance, and other costs incidental to the delivery of vehicles. This will be done at a cost of Rs 21,000 per unit.