For over a year , I have been urging EESL to ,
·
Scrap it current purchase orders ( for a
total of 10,000 Electric Cars ) on TATA and
M&M
( Delayed deliveries – by
over ONE YEAR – is a sufficiently good reason )
·
Convert that order into a “ Wet Leasing “ ( driver / maintenance / insurance included )
In my following emails ( to Shri Saurabh Kumarji – CEO , EESL ) , you
will find detailed COST / BENEFIT analysis of “ Buying
vs Leasing “ and the potential for saving of a huge INITIAL INVESTMENT ,
running into thousands of crore of rupees
I have no idea
what internal deliberations held back EESL from implementing my suggestion but
, it seems , now they are left with no other option !
How come ?
Highlights :
·
Lease period …………………5 years
·
Lease Rent……………………Rs 13,499 pm for KUV 100 NXT / Rs 32,999 pm for XUV 500
·
Furher Details………http://www.mahindra.com/news-room/press-release/1293780398
If we assume that a typical car runs 2000 km per month , then the amounts mentioned above ,
would translate as follows :
·
For KUV 100 NXT……………… Rs 7 per km
·
For XUV 500…………………… Rs
16.5 per km
To this , add following additional costs :
·
Petrol ……………………………… Rs 9
per km ( assuming 10 km per litre of petrol )
·
Driver Salary……………………. Rs 10
per km ( assuming Rs 20,000 per month )
So , the total cost for KUV 100 NXT would come to :
·
Rs 7
+ Rs 9 + Rs 10 = Rs 26 per km ( for a
petrol car )
But EESL order is for an Electric Car
which does not need any petrol
And battery charging cost would be around Re 1 per km only , taking the total per km cost
of an electric car to :
Rs 7 + Rs 1 + Rs
10 =
Rs 18 per km
Of course , both TATA and M&M would readily bring
down this figure to , Rs
12 per km when EESL floats a fresh tender for “ Wet
Leasing “
I strongly urge EESL to insist on a “ Per Km “ , lease rent method only (
under no circumstance , “ per month “ method )
This has the following distinct advantages :
·
Burden of setting up a vast Battery
Charging Infrastructure , all over the country would fall on the EV supplier
since he would not want his cars to stay parked ( idle ) if discharged
·
EESL do not need to worry about a “ fully
charged km range “ – even if it is only 80 km !
·
Car supplier would ensure immediate
replacement of any defective car
·
Car supplier would also ensure sufficient
standby drivers to take care of absenteeism
Dear Shri Saurabh Kumarji ,
This is your golden move to “ check mate “ the TATA and Mahindra !
#1
EESL
: Lease cars , do not Buy ! ………………………………………………………………[ 16 Aug 2017
]
#2
Waiting
to be proved wrong ! …………………………………………………………………….[ 30 Sept 2017
]
#3
To
Buy or not to Buy ? ……………………………………………………………………………….[ 11 Oct 2017
]
#4
Logical
to Lease ………………………………………………………………………………………… [ 06 Mar 2018
]
#5
Scam
? ………………………………………………………………………………………………………….[ 08 Mar
2018 ]
#6
Buy or Lease
? ………………………………………………………………………………………………[ 03 Apr
2018 ]
#7
Do
they have an option ? …………………………………………………………………………..[ 14 Apr 2018 ]
#8
Evidence
is piling up ! …………………………………………………………………………….[
13 May
2018 ]
#9
EESL
: a wake up time ?
[ 27 June 2018 ]
#10
OK , TATA ! ………………………………………………………………………………………………….[ 29 June
2018 ]
#11
EESL
: Grab this chance ! ……………………………………………………………………………..[ 01 Aug 2018 ]
#12
EESL
: Put it off indefinitely ! ………………………………………………………………………[ 19 Aug
2018 ]
#13
EESL
: Getting Away from Straitjacket ? ……………………………………………………….[ 26 Aug 2018 ]
#14
If
China can , so can We
[ 27 Aug 2018
]
#15
Cars
on Subscription ? Convenience Redefined
…………………………………… [ 10 Sept
2018 ]
As in case of my earlier emails , this blog too is being sent to :
=====================================================
In addition , this time , I am also sending this email to the following
:
===================================================
PM’s Economic Advisory Council :
===========================
Some others :
============================
Trade Advisory Group :
Surjit
Bhalla………………………………….. ssbhalla@gmail.com
S
Jaishankar………………………………… psfs@mea.gov.in
Rajeev
Kher……………………………….. Rajeev.kher@ris.org.in
Sanjeev
Sanyal……………………… Sanjeev@sanjeevsanyal.com / contact@idfcinstitute.org
Shekhar
Shah……………………………. ashah@ncaer.org
Vijay
Chauthaiwale……………………. { Not sending since requested to opt out
}
Pulak
Ghosh……………………………….. Pulak.ghosh@iimb.ac.in
Jayant
Dasgupta………………………… ictsd@ictsd.ch / amb-indiawto@nic.in
Rajiv K
Luthra……………………………… rajiv@luthra.com
Chandrajit
Banerjee…………………… cb@cii.in
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