Tata Motors outbids M&M, wins EESL's EV contract

Automaker giant Tata has recently won a bid for supplying 10,000 EVs to Energy Efficiency Services Limited (EESL) outbidding its rival M&M.  It will supply electric version of Tata Tigor at a price of Rs. 11.2 lakh, inclusive of GST. The price quoted is lesser than M&M’s price by  Rs 2.3 lakh. 
  
Interesting fact to note is that M&M is the only auto maker to supply EV (Reva) in India since last seven years and M&M  MD Pawan  Goenka cannot imagine getting the cost that low.  
  
For the first phase of 500 cars, M&M will supply 150 EVs to EESL and M&M will still be in contract if it reduces price that matches Tata's. For initial supply, M&M has confirmed that it will not be making money. The entire supply shall be loss-making. 
  
Goenka is looking for size reduction of the car or the battery to match the price of its rival. The question is whether Tata Motors is better off with such aggressive bid. 
 
Tata Motors is involved in the business of manufacture of motor vehicles. Its total operating revenue was Rs 44,364.00 crore with a share capital of Rs 679.22 crore for the financial year ended 31/03/2017.