Explorer

Tata Will Make Money On Every EV Sold To EESL; Claims CEO

Tata Motors had won the contract to provide 10,000 Tigor EVs to state-owned EESL

Tata Will Make Money On Every EV Sold To EESL; Claims CEO

Tata Motors is one of the oldest automakers in the country and so is Mahindra. However, it is the latter that has more hands-on experience in developing and selling electric vehicles (EVs) in India. In fact, Mahindra is the sole player in the country that offers all-electric vehicles for personal transportation. All that experience went in vain when, a few weeks back, Tata Motors bagged the contract to provide 10,000 EVs to the state-owned Energy Efficient Services Ltd (EESL).

Guenter Butschek, MD & CEO, Tata Motors said, "We will be making enough money from each of the units that we will be selling to EESL. As of now, we will be selling 6,500-7,000 units and if the other company (Mahindra) opts out we will lap up the rest of the order as well.” 

Tata Will Make Money On Every EV Sold To EESL; Claims CEO

After winning the world’s largest e-car order last month, Tata Motors is claiming that the company will be making money from each unit sold to EESL. This contract will be completed in two phases, with 500 units to be delivered by November 30, 2017. The EVs will be the Tigor electric and could very well set the tone for Tata Motors to enter the EV market. The all-electric Tigor will be manufactured at the company’s Sanand plant, situated on the outskirts of Ahmedabad, Gujarat.

Tata Motors had bid a per unit price of Rs 11.12 lakh, including the annual maintenance contract as well. That figure was a whopping Rs 2.3 lakh less than its biggest competitor, Mahindra. The winner also quoted a considerably lower running cost of just Rs 0.25/km. Mahindra, on the other hand, offered Rs 1.35/km against the same.

Tata Will Make Money On Every EV Sold To EESL; Claims CEO

The lower figures astounded Mahindra which, after losing the contract to Tata Motors, said that it was completed astounded by Tata Motor’s pricing. In the first phase of the contract, Tata Motors is slated to provide 350 EVs and the rest 150 will be given by Mahindra. This bifurcation came in after EESL asked Mahindra to lower its price and complete 30 per cent of phase 1 orders.

Over a conference call, Dr. Pawan Goenka, MD, Mahindra and Mahindra Ltd., said, "We will not be making any money on the cars we supply to EESL. We will be losing money on every car.” He further added, "I don't know the specifications of the Tata car since it is not yet out in the market, unlike the Verito, which has been there for sometime. The eVerito has a 20.5 kWh electric motor which can do 170-180 km on a full charge.”

Tata Will Make Money On Every EV Sold To EESL; Claims CEO

The EESL tender had a few prerequisites for the EVs. The sedan in question was expected to have a range of at least 130km on full charge, could be charged completely in six hours and was also expected to have an option of fast charging to juice up the car in just 90 minutes.

Read More on : Tigor AMT


This Story has not been edited by ABP News. It has been published through cardekho.com feed directly.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headline

Kejriwal To Stay Delhi CM From Jail As High Court Finds 'No Legal Bar,' Ball In LG's Court Now
Kejriwal To Stay Delhi CM From Jail As High Court Finds 'No Legal Bar,' Ball In LG's Court Now
PM Modi Calls Congress A 'Bully' After Lawyers Write To CJI. Here's What He Said
PM Modi Calls Congress A 'Bully' After Lawyers Write To CJI. Here's What He Said
Roof Collapses During Renovation Work At Chennai Bar, 3 Dead
Roof Collapses During Renovation Work At Chennai Bar, 3 Dead
Arvind Kejriwal To Stay In ED Custody For 3 More Days — A Timeline Of Delhi CM's Battle In Courts
Arvind Kejriwal To Stay In ED Custody For 3 More Days — A Timeline Of Delhi CM's Battle In Courts
Advertisement
for smartphones
and tablets

Videos

Elvish Yadav's reaction on Munawar Faruqui's arrest, Watch Video | HOT NewsNawazuddin Siddiqui And Aliya Fixes Relationship Disbalance For Kids Upbringing | Khabar Filmy HaiRamayana: Sakshi Tanwar dismisses speculations of being a part of the movie, Watch videoWill there be a date clash between Bigg Boss 18 and Lock Up Season 2? | HOT News

Photogallery

Embed widget