Tata Motors on Wednesday rolled out the first batch of the electric sedan, Tigor EV, for supply to Energy Efficiency Services (EESL), an entity under the Ministry of Power. This batch will go towards fulfilling the first phase of the order of 250 electric sedans that the company has received. The Tigor EV is being manufactured at the company’s Sanand plant in Gujarat.
Tata Group chairman N Chandrasekaran, who was present on the occasion, was hopeful that the model will be well received. Guenter Butschek, CEO & managing director, Tata Motors, said, “With Tigor EV, we have begun our journey in boosting e-mobility and offering a full range of electric vehicles to the Indian customers.” They both voiced optimism on the future of e-mobility.
The company is using Tigor’s existing line capacity at Sanand to manufacture the electric units to fulfil the EESL tender. The electric drive systems for the Tigor EV have been supplied by Electra EV, a company that deals in electric powertrains and battery packs. Electra EV recently supplied powertrains for Tata Nano-based Neo, which will be manufactured by Jayem Automotives. For Tata Motors, producing the Tigor EV entails only a change in the powertrain vis-a-vis its other models.
While Tata Motors has already received a letter of appointment (LoA) for 250 units in the first phase, an LoA for another 100 is expected to be issued shortly by EESL. Mahindra and Mahindra will supply the remaining 150 sedans, which form part of the total 500 EV vehicles ordered by EESL in the first phase.
Tata Motors was the lowest bidder for the tender floated by EESL for 10,000 electric sedans. Later, the oldest player in the EV race in India, Mahindra and Mahindra, had agreed to match the lowest bid that was made by Tata Motors.
The bid made by Tata Motors was for `11.2 lakh per unit, which was `2.35 lakh cheaper than the bid made by M&M.
The second phase of the order is going to be for 9,500 units, which will have to be met by the two players after completing the first phase of the order. While Tata Motors is keen to take part in the second phase, M&M has not yet confirmed its intentions to bid for the second phase.
While M&M has been the only player in the electric vehicle segment in India for the past five years, Tata Motors winning the EESL order has clearly demonstrated its aggressive intent in capturing a large slice of this emerging opportunity.
Electric vehicles procured under the current tender will be used to replace petrol and diesel cars currently used by the central government and its agencies over a three-four years. The tender floated by EESL for 10,000 EVs is the world’s largest single electric vehicle procurement initiative.