Mahindra & Mahindra is to split the 10000 Electric Vehicle (EV) order given by Energy Efficiency Services Limited (EESL) which was initially awarded to Tata Motors. The tender provided for an order split between lowest and second-lowest bidder in certain ratios. M&M which was the second lowest bidder reduced the price of its e-Varito by 18% matching with the lowest bid of Tata Motors's e-Tigors will now supply 150 out of 500 sedans to be supplied in the first phase of the order.
However, it is not clear that how the second consignment of 9500 units will be split between the two companies. Notable, EESL is a joint venture of four government-owned power sector entities- National Thermal Power Corporation (NTPC), Power Grid Corporation of India, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) is trying to create a market for E-vehicles by aggregation of demand and bulk procurement of EVs. EESL plans to first buy the EVs and then lease it to government requirement.