Centre to expand its EV fleet; tender for 3,500 electric vehicles soon

State-run Convergence Energy Services (CESL), which handles the acquisition of electric vehicles for central and state government departments, said it has got a demand for over 3,000 EVs. A tender may be floated soon. Central and state governments have a combined fleet of about 6,00,000 petrol and diesel cars at present.

ET Now Digital

Updated Oct 3, 2022, 12:24 IST

New Delhi: In a major green push, the government is planning to replace its fleet of thousands of petrol and diesel cars with electric powertrain vehicles. A tender to procure 3,500 electric vehicle (EV) units will be issued soon.

Central and state governments have a combined fleet of about 6,00,000 petrol and diesel cars at present. As the government looks to cut down on these and expand its EV fleet, state-run Convergence Energy Services (CESL), which handles the acquisition of EVs for central and state government departments, said it has got a demand for over 3,000 EVs.

CESL chief executive Mahua Acharya told Economic Times that the company has received a 'qualified' demand for 3,500 electric vehicles, a tender for which may be floated shortly. The size of the program could expand further with the launch of more and more EVs by automakers at affordable rates.

"Additionally, there is an opportunity to increase penetration of electric vehicles in the fleet segment. Given the usage patterns and economics, fleet is one area where EV 4W sales can take off with more options being introduced in the mass market", said Acharya.

CESL’s fresh tender comes at a time the market for passenger vehicle EVs is set to cross 50,000 units for the first time as EV adoption gains pace. While the qualified demand for EVs to be added in the government’s fleet is 3,500, the number could jump significantly to 10,000 vehicles within two years, she added.

The sweet spot of EVs for government employees is around Rs 15-17 lakh. "We only have a few models on the road. When we offer options, only very few are accessible," Acharya noted. For this affordability level, the current Nexon EV works very well, she opined.

Meanwhile, Tata Motors last week surpassed the sub-Rs 10 lakh barrier in EV pricing with the launch of Tiago at a disruptive price of Rs 8.49-11.79 lakh (ex-showroom) for the first 10,000 buyers.

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