Tata Motors had agreed to supply the vehicles for a price of Rs 10.16 lakh which after GST comes to Rs 11.2 lakh per car.
Tata Motors on Monday became the second company after Mahindra and Mahindra (M&M) to create an electric vehicle vertical which would tap into the full potential of this emerging technology. The company also appointed Shailesh Chandra the head of this vertical. Earlier, the electric vehicle initiative of Tata Motors was being run through a project office. “Chandra will lead the new vertical in addition to his current responsibility and will be redesignated as president – electric mobility business & corporate strategy, with immediate effect and will continue to be a member of the executive committee,” Tata Motors said in BSE filing.
“Creation of this new business vertical will enable Tata Motors to deliver on its aspiration of providing innovative and competitive e-mobility solutions,” it added. Tata Motors was the first company to have won in October 2017 the country’s first contract to supply 10,000 electric cars to the government’s Energy Efficiency Services (EESL). Later, M&M agreed to match Tata Motors’ price and was given a portion of the contract. As a result, in the first phase of the project, 250 vehicles would be supplied by Tata Motors while M&M would supply 150.
Tata Motors had agreed to supply the vehicles for a price of Rs 10.16 lakh which after GST comes to Rs 11.2 lakh per car. “Chandra has played an instrumental role in leading the project teams to deliver the EESL project and has been closely working with some of the group companies and other ecosystem partners in his current role,” Tata Motors said.
For the second phase of 9,500 cars, M&M will again be given the option of matching Tata Motors price for bagging 40% of the contract. With the formation of the dedicated vertical being headed by Chandra, Tata Motors apart from concentrating on the EESL tenders would also look at opportunities by various state governments in the area of electric vehicles, company officials said.
The company’s CEO and managing director, Guenter Butschek, said in a statement: “Tata Motors is optimistic about the future of electric vehicles and would like to lead the electric mobility evolution in the country.” The company will also leverage on the capabilities of other Tata group companies to develop the full ecosystem and fast-track the adoption of e-mobility, he added.