Tata Motors may get notice over EV order

Ivan Leon

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The (Indian) government is likely to issue a show-cause notice to Tata Motors seeking reasons for not scrapping the first bulk order for electric cars, as it alleges that the automaker was reneging on the contract, people with knowledge of the development said.

The move comes after the performance of the first batch of cars it delivered under the 5,000-vehicle order didn’t meet expectations and as the company is seeking changes to the specifications for further supplies, they said.

In fact, rival Mahindra & Mahindra, which is to supply another 5,000 cars in the second phase of the same tender for 10,000 vehicles, has also been negotiating to downgrade charging and battery specifications from what it had offered, they said.

Vehicles will still be within tender specifications post downgrade.

The people said Energy Efficiency Services Ltd (EESL), the state-run agency that is responsible for the procurement of the cars for government departments, had consulted the law ministry and the notice could be issued soon.

Source: https://auto.economictimes.indiatim...-motors-may-get-notice-over-ev-order/65221825
 
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