Tata Motors emerges as lowest bidder for electric buses tenderTATAMOTORS - 400 Change: -15.00 (-3.61 %)
News: As per media sources, Tata Motors has emerged as the lowest bidder for tender floated by Convergence Energy Services Ltd for procurement of electric buses domestically. The tender is envisaged for 5,400 buses amounting to over ₹ 5,000 crore with buses being mostly sold on operating lease model (maintained and run by OEM against fixed charge of ₹/km for a specific no. of years).
Views: Tata Motors is leading the charge in the electrification drive domestically and is already an industry leader in the domestic electric passenger vehicle segment. With this order it will also emerge as one of the largest player in the electric bus segment. We await the official communication from the company before commenting on the financial implication of the same. However, the ₹/km rate mentioned in the media articles seem highly competitive amidst substantial rise in key commodity prices. We also hold a conservative view on the operating lease model for selling e-buses as it largely implied OEM to carry the asset on their B/S.