Shares of Tata Motors climbed over 2% on Monday after the Tata Group company announced it has secured the largest order to date for electric buses by Delhi Transport Corporation (DTC). Tata Motors subsidiary, TML CV Mobility Solutions, has signed a deal with the DTC for operating 1,500 electric buses in the city of New Delhi.
As part of the agreement, TML CV Mobility will supply, operate, and maintain 1,500 units of 12-metre low-floor air-conditioned electric buses for a period of 12 years, Tata Motors said in a post market hour release on Friday. Tata Starbus EV is an indigenously developed vehicle.
Reacting to the news, Tata Motors share price gained as much as 2.3% to hit a high of ₹387 after opening flat at ₹378.3 on the BSE. The market capitalisation of the auto major climbed to ₹1.28 lakh crore with 3.5 lakh shares changing hands over the counter in the first two hours of trade, as compared to the two-week average volume of 7.7 lakh stocks.
Tata Motors shares were trading near its 52-week low of ₹366.05 touched on May 12, 2022, while it hit a 52-week high of ₹528.35 on January 18, 2022. The auto heavyweight has fallen over 22% in the calendar year 2022, whereas it dropped 6.6% in the past six months. The stock has lost 10.6% in a month and 6.5% in a week.
Commenting on the deal, Asim Kumar Mukhopadhyay, chairman, TML CV Mobility Solutions said, “It is indeed a historic occasion for us as we sign a definitive agreement for the country’s largest electric bus order. Our relationship with DTC, which has stood strong for over a decade, is based on the foundation of mutual trust and cooperation and this order will further strengthen it. We are confident that the electric buses will provide sustainable, safe and comfortable public transportation to the commuters of Delhi.”
“We are pleased to have signed an agreement for the largest order of 1500 electric buses in Delhi. This is a significant step towards embracing electric mobility in the capital city. The induction of zero-emission, noise-free buses will greatly help in improving the city’s air quality. The new buses will also immensely benefit the commuters with its ultra-modern features and comfortable seating,” said Shilpa Shinde, IAS, Managing Director, Delhi Transport Corporation.
Till date, Tata Motors has supplied more than 730 electric buses across multiple cities in India, which have cumulatively clocked more than 55 million kilometres, with an uptime of over 95%. Earlier this month, the company had bagged an order from Bengaluru Metropolitan Transport Corporation (BMTC) for the operation of 921 electric buses in the city of Bengaluru.