Mahindra & Mahindra matches Tata’s bid for EESL tender

Mahindra & Mahindra has decided to match the bid price offered by Tata Motors for phase-1 of the tender released by Energy Efficiency Services Ltd (EESL). 

The entire order consists of 10,000 EVs that’s expected to be supplied in two phases. Phase 1, where 500 EVs need to be delivered by November 30, 2017, and phase 2, which entails delivery of the remaining 9,500 EVs that are due sometime in 2018. 

Despite Mahindra & Mahindra being given the option to supply 50 per cent of the 500 EVs, the company now confirms that it will supply 30 per cent. This translates into 150 EVs in phase-1 vis-à-vis Tata Motor’s 250 EVs scheduled for the same period. 

Mahindra & Mahindra chose to stick to 30 per cent since they found it extremely difficult to match the competitor’s bid price. While Tata Motors is expected to roll out the Tigor compact sedan in EV form, Mahindra is putting its best foot forward with their e-Verito. 

However, Mahindra & Mahindra attributes the difference in price bids to the fact that it is costlier to produce the e-Verito. They claim that it is larger and goes beyond the minimum stipulated requirements (as required by the tender). 

Mahindra & Mahindra told reporters today that they essentially matched the Tata Motor’s price bid since they want to support the Government’s initiative in the EV space. However, the company re-iterated that they haven’t made a decision on phase-2 yet. 

For now, Dr Pawan Goenka, MD- Mahindra & Mahindra, said “We will do our best to make the best possible products against this tender, and also provide them on time so that we can work with the Government to make this initiative a success.”