Tata Motors is likely to receive show-cause notice from the government seeking reasons for not scrapping the first bulk order for electric cars, as it alleges that the automaker was reneging on the contract.
In a recent report by Economic Times, sources aware of the incident said that the performance of the first batch of cars delivered by the auto major under the 5,000-vehicle order didn’t meet expectations and as the company is also planning to bring in changes to the specifications for further supplies.
Alongside 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.
The officials stated that 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. This move can be a major blow in promotion of electric vehicles in the country as Tata and Mahindra are the only two automakers manufacturing electric cars in India at the moment.
