Energy Efficiency Service Limited Raising Demand for EV

Even though policies changes and related modifications were undertaken in the Electric Vehicle
the sector, not many visible steps were put forward by the government when it came to the
promotion of EV’s, but things are about to change as a fresh tender to manufacture 1000 electric
cars were issued by the government in nearly two years.

Energy Efficiency Service Limited (EESL) is the muscle behind the order and has conveyed that
they want EV’s with an expected range of at least 180 Kilometer per charge. EESL have first
issued their order back in 2017 and is currently bracing to absorb a total of 2000 cars from
various Indian manufacturers apart from the newly issued order. Tata Motors and Mahindra &
Mahindra were able to deliver a total of 1500 compact Electric powered sedans and the
remaining 500 would be rolling the roads soon enough. EESL expects the new tender vehicles to
be bundled with a six-year manufacturing warranty plus an additional six-year service warranty.
EESL had Initial plans to procure 10,000 electric cars to be deployed on to various government
agencies as a result of an aggregated demand from the central and the regional governments
across the nation but the recent shift in the government has slowed down the overall demand.
The lowered demand from the state governments has resulted in EESL to look for private players
to partner in for deployment in electric vehicles.

The need for 1000 vehicles by EESL is at the right nick of time as many of the private and public
sector firms are racing to showcase their electric vehicles and its capabilities. Auto Expo India
2020 was such a stage were the competing parties took on each other through innovation, cost
and added features. With the 180 Km range as the benchmark for selection, Nexon EV compact,
MG motors ZS, Mahindra’s XUV 300 EV, Hyundai Kona is likely to bid for the newly put
forward order. One of the prominent reasons for fresh order outside the existing supply partners
by EESL was performance issues by already adopted 1500 cars from Tata’s and Mahindra’s.
It is a crucial step taken by the government as the Indian market is experiencing a downhill
journey due to economic slowdown. Such kind of government initiatives are essential for
boosting the electric vehicle industry that has a limited market share due to which facing a lack
of innovation.