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Government Fleets to be Replaced by 3,500 Electric Powertrain Vehicles

CIO Insider Team | Monday, 3 October, 2022
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Government fleets of petrol and diesel are in thoughts of being replaced with electric powertrain vehicles by the Centre plans to commence with the issue of a tender to procure 3,500 EV units shortly.

The size of the program could expand as more and more electric vehicles are launched by automakers at the affordable end of the market, claims Convergence Energy Services (CESL), the state-run company that handles the acquisition of EVs for central and state government departments. Central and state governments have a combined fleet of about 600,000 petrol and diesel cars.

According to reports, the company is said to have received a 'qualified' demand for 3,500 electric vehicles, a tender for which may be floated shortly.

On the other hand, an opportunity seems to exist in increasing the penetration of electric vehicles in the fleet segment. The fleet is one area EV 4W sales can take off with more options being introduced in the mass market, considering the usage patterns and economics.

Word on the street says that about 20 EVs are set to hit Indian roads in the next three years

As the adoption for EV is gaining momentum in the passenger vehicle space, the fresh tender from CESL seems to have made its way. The market for passenger vehicle EVs is set to cross 50,000 units for the first time.

At present, reports say that the qualified demand is 3,500, and it is believed to rise up to 10,000 vehicles within two years.

Last month, Tata Motors is said to have breached 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. The company also offers electric variants of SUV Nexon and sedan Tigor, at present. Tata Motors is scheduled to come out with Altroz EV and Punch EV in the next one year, expanding the choices for consumers in the sub Rs.15 lakh market.

Currently, it is said that the sweet spot of EVs for government employees is around Rs.15-17 lakh.

For the government of India, reports say that the ideal affordability replacement level is Rs.15-17 lakhs.

Word on the street says that about 20 EVs are set to hit Indian roads in the next three years.

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