Tata Declines Government Issuing Show Cause Notice Over EV Deal

tata tigor ev rolled out sanand plant 1 (government show cause notice tata)

Tata Motors stated that the low driving range issue of Tigor EV is addressed and it was clarified by EESL

UPDATE: Tata Motors has officially issued a statement that it is not requesting any changes in the EESL tender specification “whatsoever”. The brand appreciates EESL’s efforts to come up with optimised tender specification, balancing the price and range accessibility. Tata further concedes that the Tigor EV is specifically designed to meet these specs.

The tender required the EV to have 130 km range under standard conditions but the Tigor EV has gone a little better with certified electric range of 140 km on a single charge. Tata states that this proves the brand not needing any specification changes. The low driving range issue has also been confirmed to be addressed and it was clarified by EESL.

According to ET Auto’s report, the government may issue a show cause notice to Tata Motors by seeking reasons why the company did not scrap order for electric cars. The Indian manufacturer won 10,000-vehicle initial tender from government by biding for lowest price, as Mahindra was the only other manufacturer competing for the tender. They had to lower price also to get 5,000 cars tender noticeably.

Tata Motors priced Tigor EV at Rs. 11.2 lakh per unit, inclusive of tax with 5 five year warranty. The company has already delivered initial batch of EVs to Energy Efficiency Service Ltd (EESL), which is a public unit under power ministry. According to tender, the EV is expected to give range of 130 km on a single charge.

But the EVs delivered by Tata Motors didn’t give the expected range as most of the officials who received the EVs got around 80-82 km range in city, which is very low compared to normal vehicles and charging time is high as these models doesn’t come with fast charging. Most of the government officials refused to use these EVs because of these problems.

Both companies are negotiating with EESL to make changes for tender to degrade battery and charging specification as they won’t be able to meet it with current products. The current vehicles are powered by 17 kW battery pack, which is lower compared to global standard of 27-35 kW for most EVs.

tata tigor ev rolled out sanand plant

Tata Motors said to ET Auto that they didn’t receive any warning from EESL regarding range and performance as most of the figures are speculative. But Mahindra didn’t comment on the issue and EESL said tender didn’t have any problems, the companies delivered below average products to government officials.

EESL cancelled second order of 10,000 EVs as they are working on new specification and range to attract international companies to bid for tender, so government will be able to provide world class products. The government is going to announce second phase of FAME scheme soon and we are expecting manufacturers to introduce EVs in coming years.