Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Friday, 12 October 2018

OWNING ELECTRIC CARS BY EESL ? TIME TO RETHINK


EESL  :  It is your  move  now  !

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



#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

 

 

Also to :

skumar@eesl.co.in

vdwivedi@eesl.co.in

jsaujla@eesl.co.in

 

12  Oct  2018

www.hemenparekh.in / blogs

 

 

 


 

 

 

 

 





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