Mahindra & Mahindra matches Tata Motors' bid to supply 150 electric vehicles; shares jump

State-run Energy Efficiency Services or EESL on Wednesday said that Mahindra and Mahindra has matched the Tata Motor's lowest bid price to supply electric vehicles. This comes a week after Tata Motors received an order valued at around Rs 1,120 crore to provide 10,000 electric vehicles. All 10,000 e-cars will be procured in two phases and under phase-I, 500  vehicles will be procured. Mahindra and Mahindra will supply 150 electric vehicles in the first phase. In Phase-2, 9,500 vehicles will be ordered post phase-I deliveries. Follwing the bidding news, Mahindra and Mahindra shares today shot up over 1 per cent. It opened at Rs 1,306 and touched an intraday high of Rs 1,315.90.

ESSL on Wednesday issued a statement saying: "ESSL confirms order for phase 1 of its Electric Vehicle tender Mahindra & Mahindra matches lowest bid price, quoted by Tata Motors." EESL Managing Director Saurabh Kumar spoke to PTI and said: "As per the tender conditions, Mahindra and Mahindra can supply up to 40 per cent of the order. But they have agreed to supply 30 per cent of the order of 500 electric cars in phase-1. Thus they would supply 150 cars and Tata Motors would supply 350 cars." He also talked about Phase-II procurement of 9,500 cars post Phase-I and said: "As per tender, they (Mahindra and Mahindra) can supply up to 40 per cent of order. It is up to them to decide about the quantum of supply within their permissible limit."

Talking about the two auto majors, Kumar said: "The aim of this tender is in keeping with our government's emphasis on electric vehicles to provide a clean and green tomorrow. We are happy that Indian conglomerates such as Tata Motors and Mahindra are participating in this global tender which embodies the 'Make in India' philosophy."

Last week, Tata Motors had emerged as the lowest bidder for 10,000 electric cars auction conducted by the ESSL. "The company (Tata Motors) was selected through an international competitive bidding aimed at increased participation," EESL had said. Tata Motors had quoted the lowest price of Rs 10.16 lakh exclusive of GST. The vehicle will be provided for Rs 11.2 lakh, which will be inclusive of GST and comprehensive 5 year warranty which is 25 per cent below the current retail price of a similar e-car with 3 year warranty. The vehicles will be be supplied with eight-week of issue of letter of award for phase I (by November 30 2017), EESL said. Other companies, Mahindra & Mahindra (M&M) and Nissan had also participated in the tender and bids for Tata Motors and M&M were opened, it added.