Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Tata Motors, Mahindra & Mahindra, and Geely’s electric pickup brand Riddara have emerged as winners in a major government tender to supply vehicles to Nepal’s security agencies, securing contracts worth approximately Rs 1 billion. The procurement targets the replacement of vehicles damaged during Gen-Z–led protests and the strengthening of logistics ahead of upcoming elections.
According to officials involved in the process, the government will procure a total of 235 vehicles under the tender. Tata has been awarded contracts to supply 150 vehicles, Mahindra 75 vehicles, while 10 electric pickup trucks will be supplied by Geely’s Riddara. Both the Nepal Police and the Armed Police Force (APF) have formally assigned vehicle delivery responsibilities to the three companies.
The decision to purchase new vehicles followed extensive damage to police fleets during protests held on Bhadra 23 and 24 (September 8–9). Subsequently, the government released the required funds to both the Nepal Police and the APF to proceed with the procurement.
Officials said most of the Rs 1 billion budget will be spent on internal combustion engine vehicles, resulting in larger contract volumes for Tata and Mahindra. Security agencies have opted primarily for Mahindra Camper and Tata Yodha pickup trucks for operational use.
In the first tender floated by Nepal Police for 85 vehicles, Mahindra secured a contract worth around Rs 300 million. Under this package, the company is preparing to deliver 75 units, with each Mahindra Camper priced at approximately Rs 4.1 million.
Bardan Basnet, Deputy Director of Agni Incorporated—the authorized distributor of Mahindra vehicles in Nepal—said the government procurement would provide momentum to the otherwise slow automobile market. He noted that vehicle purchases by public agencies alone generate business of around Rs 1 billion, which would have a positive spillover effect across the sector.
In the electric vehicle segment, Geely’s Riddara won the tender to supply 10 electric pickup trucks at a unit price of Rs 5.5 million, bringing the total contract value to about Rs 50.5 million. CG Motors, the authorized distributor of Riddara in Nepal, will install additional equipment required by security agencies, including sirens and protective fittings, before handing over the vehicles.
Meanwhile, Tata secured the second major police tender to supply 100 pickup trucks. Police Headquarters in Naxal had issued the tender with an estimated budget of Rs 420 million, fixing the base price at Rs 4.2 million per vehicle. Tata won the contract by submitting a bid of around Rs 400 million, offering a price roughly Rs 70,000 lower per unit than Mahindra.
Tata has also been awarded another contract to supply 50 pickup trucks to the Armed Police Force, with the deal valued at approximately Rs 220 million. Sources said Tata and Mahindra were the primary contenders in this bid as well. Nepal Police officials confirmed that issuing the Letter of Intent (LoI) to Tata is the only remaining procedural step.
Authorities said the contracts were awarded after the companies met all technical requirements and offered competitive financial proposals. Evaluation criteria included compliance with tender conditions, pricing, technical specifications, and prior experience in supplying vehicles to government agencies.
Under the tender provisions, all vehicles supplied must be equipped with BS-VI–compliant engines, underscoring the government’s push for stricter emission standards in public sector procurement.
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