Home Passenger Vehicle Cars Chinese carmaker’s bid for government EV tender faces hurdle

Chinese carmaker’s bid for government EV tender faces hurdle

NEW DELHI: Energy Efficiency Services (EESL), the government’s electrical autos procurement arm, has said that MG Motor, a subsidiary of China’s Shanghai Automotive (SAIC), will stand disqualified for their upcoming e-vehicles tender within the absence of an official clearance by a panel comprising officers from the division for promotion of trade and inner commerce (DPIIT), and residential and exterior affairs ministries.

EESL MD Saurabh Kumar said the company has floated a brand new tender for 250 electrical automobiles, and the Chinese company, which sells ‘ZS’ e-vehicle, has to fulfil the factors to take part. The tender closes on Friday.

“There is a specific requirement recently spelt out by the government that any company which has an ownership from China has to follow a registration process. They need a clearance from the DPIIT. This is part of the tender process,” Kumar instructed TOI. “If they don’t have it, they will stand disqualified, simple.” EESL’s situation comes because the government has stipulated strict circumstances for funding and tender participation from Chinese corporations over the previous few months after the escalation of tensions between the 2 international locations.

As the diplomatic relations worsened, the Maharashtra government had in late June placed on maintain funding proposals value Rs 5,000 crore by Chinese corporations, together with by carmaker Great Wall Motor.

Before tensions on the border escalated, EESL had purchased a couple of models of the MG ZS SUV as a part of the company’s coverage to check new e-vehicles which might be launched into the market, Kumar said.

ETAuto Originals: Will China fade away on the Indian car turf?

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