Tata Motors, Hyundai to supply Nexon and Kona EVs for government use

EESL, a joint venture of PSUs under the Ministry of Power, Government of India, has placed orders for 150 Nexon EVs and 100 Kona EVs.EESL will purchas
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Kona and Nexon EV are electric options on offer from Hyundai and Tata Motors in India, respectively.
Kona and Nexon EV are electric options on offer from Hyundai and Tata Motors in India, respectively.

Energy Efficiency Services Limited (EESL) on Thursday announced it had placed orders for 150 Nexon electric vehicles (EVs) from Tata Motors and another 100 Kona EVs from Hyundai for government use.

EESL is a joint venture of PSUs under the Ministry of Power, Government of India.

Tata Motors Limited and Hyundai Motor India Limited won a tender to supply the EVs and a letter of award for the procurement was presented to the two companies, in the presence of Mr. Guenter Butschek, CEO & MD, Tata Motors, Mr. Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors and Mr. Tarun Garg, Director – Sales, Marketing & Service, Hyundai Motor India Ltd.

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EESL informed that it will procure Tata Nexon at 14.86 lakh each, 13,000 cheaper than its ex-showroom price of 14.99 lakh whereas Hyundai Kona, which offers a higher range, will be procured at an 11% lower price band of 21.36 lakh and with a standard three-year warranty. It also said that this procurement will utilize $5 million from the recent grant provided by the Asian Development Bank (ADB).

EESL has received financing from ADB towards the cost of scaling up and financing high priority areas like Demand Side Energy Efficiency Sector Projects.

EESL had previously ordered 10 units of Kona Electric back in 2019 as a pilot project for clean mobility. Kona was the first EV SUV to be launched in India back in early 2019.

As per Hyundai, Kona Electric is India's first long-ranged electric SUV which has an ARAI certified full charge range of 452 Kms.

Nexon EV, however, has emerged as the more affordable offering and was first launched in December of 2019.

Providing EESL with the EVs would be a massive shot in the arm for both companies. "We have been partnering EESL and are pleased to provide more EVs to them for government use, enabling a smooth and sustainable transition to a future-oriented mobility solution," said Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors.

SS Kim, MD & CEO, Hyundai Motor India, also echoed similar thoughts and informed that the Korean car maker is in line with the government's vision for a cleaner future for mobility. "it is our privilege to align with the government’s goal for clean energy and collaborate with all stakeholders to create a sustainable ecosystem for electric mobility. Here, it is a moment of great pride to receive this order of 100 Kona electric SUVs from Energy Efficiency Services Limited," he said.

First Published Date: 03 Sep 2020, 15:27 PM IST
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