Convergence Energy Services (CESL), the state-owned company that handles the acquisition of electric vehicles for central and state government departments, said the size of the program could expand as more vehicles come in. electric cars are launched by automakers at the affordable end of the market. . The central and state governments have a combined fleet of approximately 600,000 gasoline and diesel cars.
CESL chief executive Mahua Acharya told ET that the company had received a “qualified” request for 3,500 electric vehicles, which could go out to tender shortly.
“Additionally, there is an opportunity to increase the penetration of electric vehicles in the fleet segment. Considering usage patterns and economics, fleet is one area where 4W EV sales can take off with more options introduced to the mass market,” Acharya said.
CESL’s new tender comes at a time when EV adoption is gaining momentum in the passenger vehicle space. The passenger vehicle electric vehicle market is expected to cross 50,000 units for the first time.
While qualified demand is 3,500, very quickly the number could rise to 10,000 vehicles within two years, she added.
Last week, Tata Motors broke the sub-Rs 10 lakh barrier in EV pricing with the launch of Tiago at a disruptive price of ₹8.49-11.79 lakh (ex-showroom) for the first 10,000 buyers. The company also offers electric variants of the Nexon SUV and the Tigor sedan, at present. Tata Motors is expected to release Altroz EV and Punch EV over the next year, expanding choices for consumers in the sub-₹15 lakh market.
According to Acharya, the sweet spot of electric vehicles for government employees is around ₹15-17 lakh. “We only have a few models on the road. When we offer options, very few are accessible.”
For the Indian government, the ideal affordability replacement level is ₹15-17 lakhs – the current Nexon EV works very well, Acharya believes.
Overall, nearly 20 EVs are expected to hit Indian roads over the next three years.