Mahindra plans to cut features of the e-Verito to make it cheaper. The company’s bid for the EESL tender was Rs. 2.3 lakhs more than Tata Motors’. Due to this, Tata won the order to supply the Tigor Electric to EESL, a government company that will lease out electric cars to various government departments.
Mahindra did manage to match the Tigor Electric’s bid price of 11.2 lakhs, and will now supply 150 e-Veritos out of the 500 electric cars in the first phase of the order. But the company will lose money if it supplies the e-Verito at the same price in the second phase.
In order to make sure that this does not happen, some features will be reduced in the e-Verito that Mahindra will supply to EESL. However, while doing this, the company will ensure that the car still meets all tender requirements. Here is what Dr. Pawan Goenka, the MD of Mahindra said about this matter,
One area that we have potentially identified is that the range we have designed our vehicles for is more than what is required in the tender. Currently, we are looking at how do we bring down the range. Second, we would look at other areas (features) which are beyond the tender. We will have to be at the tender level. It (Cutting length of the vehicle) doesn’t happen overnight and by doing so, we will be taking away the comfort of the customer. So, it is not going to happen.
If Mahindra manages to make the e-Verito as cheap as the Tigor Electric by cutting down on features, the company will b able to supply 3,800 cars to EESL. This is worth around 425 crores. The total order for the 10,000 electric cars is worth 1,120 crores. If Mahindra chooses not to supply the e-Verito in the second phase of electric car procurement, Tata will walk away with the order for 9500 cars, worth around 1,064 crores.