EESL to source 250 Electric Vehicles from Tata Motors, Hyundai

New Delhi: Energy Efficiency Services Ltd (EESL) today announced it’ll procure 250 electric vehicles from Tata Motors and Hyundai Motor India which were selected through a world competitive bidding process.

The two firms had won the worldwide tender to provide 150 Nexon electric compact SUVs and 100 Kona electric premium SUVs, respectively, for state use.

EESL will procure Tata Nexon at Rs 14.86 lakh each, Rs 13,000 cheaper than its ex-showroom price of Rs 14.99 lakh, whereas Hyundai Kona, which offers a better range, are going to be procured at an 11 per cent lower cost band of Rs 21.36 lakh and with a typical three-year warranty.

These electric vehicles will replace the prevailing 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) in Kerala to be supplied within the initial phase.

EESL had received financing from the Asian Development Bank towards the value of scaling up and financing high priority areas like Demand-Side Energy Efficiency Sector Projects. The EV procurement will utilize $5 million from that grant.

“This will greatly enhance the energy security of the country and can also cause a discount in GHG emissions from the transport sector. Furthermore, we’re also performing on the rapid establishment of EV charging stations, which can provides a fillip to the electrical vehicle sales, going forward,” said Saurabh Kumar, MD, EESL.

EESL is seeking to make the marketplace for electric vehicles through its business model of aggregation of demand and bulk procurement. It leverages the immense potential of replacement of existing vehicles within the government departments for initial demand aggregation.

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