Tata Motors, Hyundai bag 250 EV supply order from government 

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The Energy Efficiency Services Limited (EESL), under the Ministry of Power, will procure 250 electric vehicles from Tata Motors and Hyundai Motor India. The companies were selected through an international competitive bidding process. 

Tata Motors will supply 150 Nexon electric compact SUVs and Hyundai Motor 100 Kona electric for government use. These electric vehicles will replace the existing petrol and diesel vehicles of the Central and State Governments.

“This procurement will utilize 5 million USD from the recent grant provided by the Asian Development Bank (ADB)”—read an EESL statement. 

EESL has received financing from ADB towards the cost of scaling up and financing high-priority areas like demand-side energy-efficiency sector projects.

The energy service company will procure Tata Nexon at Rs 14.86 lakh each, Rs 13,000 cheaper than its ex-showroom price of Rs 14.99 lakh, whereas, Hyundai Kona, which offers a higher range, will be procured at an 11% lower price band of Rs 21.36 lakh and with a standard three-year warranty. 

EESL seeks to create the market for electric vehicles through its unique business model of aggregating demand and bulk procurement. It seeks to leverage the immense potential of replacement of existing vehicles in the government departments for initial demand aggregation.

EESL has already received an order for 300 long-range EVs from The Agency for Non-Conventional Energy and Rural Technology (ANERT), Kerala, to be supplied in the initial phase.

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