Tata Motors may get show cause notice from the government over the electric vehicle (EV) order claims a report. According to ET the government may issue the notice seeking reasons for not scrapping the first bulk order for electric cars, as it alleges that the automaker was going back on the contract.
The publication citing sources notes that the move comes after the first batch of cars’ performance that the company delivered under the 5,000-vehicle order didn’t meet expectations. And, the company is seeking changes to the specifications for further supplies.
The report further states that Mahindra & Mahindra has also been negotiating to downgrade charging and battery specifications from what it had offered. Mahindra & Mahindra will be also supplying another 5,000 cars in the second phase of the EESL’s same tender for 10,000 vehicles,
The publication citing sources reports that EESL consulted the law ministry and the notice could be issued soon.
EESL recently scrapped its second tender for procurement of another 10,000 electric cars, because of lack of clarity on standards for charging stations which would allow foreign carmakers also to vie for the contract.