Mahindra & Mahindra will supply 150 e-cars to EESL in phase-I, but no decision yet on phase-II

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.

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."

Meanwhile, Mahindra & Mahindra today said that the company is yet to take a call on taking part in the second phase of tender bidding. The orders for supply of 9,500 electric cars in the second phase will be issued after the completion of deliveries of 500 EVs in the first phase. M&M Managing Director Pawan Goenka said that the company would have to look at the costing part before bidding in the second phase.

"We have been selling electric vehicles in the country for the the last five years. We have an idea about the costing of various components. So we find it difficult to comprehend the pricing offered by the other bidder (Tata Motors). So we will have to take a hard look as whether it would be justifiable to participate in the second phase," Goenka said. He further said that Mahindra & Mahindra would lose money as its product is about Rs 2.3 lakh expensive than other manufacturers.

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.

(With inputs from PTI)