Indian automaker Mahindra & Mahindra is fast emerging as the leading supplier of electric vehicles in the country as it bagged a fresh order from a private company.
Transportation services provider Baghirathi Group has placed an order to purchase 1,000 electric sedans from Mahindra & Mahindra, several Indian media outlets recently reported. Baghirathi Group offers transportation services for schools as well as corporates and plans to expand the use of electric vehicles in its business.
The total value of the purchase order is Rs 110 crore ($17.3 million), although it is not clear if M&M will also offer maintenance of vehicles in this contract. The order will be completed through the M&M subsidiary Mahindra Electric. The cost per vehicle comes out to Rs 11 lakhs (~$17,300).
Mahindra Electric will supply its e-Verito sedan, which is the same model it supplied to Energy Efficiency Services Limited (EESL) following a competitive auction. EESL had called for bids to supply 500 electric sedans. Tata Motors placed the lowest bid and secured rights to supply 350 sedans while M&M supplied 150 sedans. Tata had placed a bid of Rs 10.16 lakhs per unit (~15,975), which M&M was forced to match despite having viability concerns.
M&M, last month, confirmed that it will participate in the second phase of the EESL tender wherein bids will be called for the supply of 9,500 electric sedans.
Mahindra Electric has an impressive portfolio of electric vehicles on offer, which includes hatchbacks (e2o and e2o plus sedans), vans (eVERITO), eSupro, and a three-wheeler, the e-Alfa Mini. The parent company M&M has already invested Rs 500 crore ($75 million) in the electric mobility division and plans to invest another Rs 600 crore ($90 million) over the next three years. The eventual investment planned by M&M is around Rs 4,000 crore ($600 million).
As for the Baghirathi Group, the company plans to increase its fleet size from its current 2,000 to 10,000 in the next 3-5 years. A majority of the fleet will be comprised of electric vehicles.