The contract to supply Tata Starbus Diesel Series Hybrid Electric Bus with full low floor configuration is the single largest order awarded for hybrid electric vehicle technology, Tata Motors said in a statement.
It did not disclose the value of the contract.
With these buses, the MMRDA will connect Bandra Kurla Complex (BKC) to the railways stations of Sion, Bandra and Kurla in the next one year, improving feeder services, to the fastest-growing business hub in Mumbai, it added.
Tata Motors Executive Director, Commercial Vehicle Business Unit, Ravi Pisharody said: "With this indigenously developed city bus, we are extremely pleased to partner MMRDA for 25 such buses, for a shared vision of sustainable cost-efficient transport solutions.
The company said its hybrid electric bus offers the lowest cost of ownership, with improved fuel savings of the order of 25-30 per cent, reduction in emissions in comparison to conventional buses and runs on pure electric mode, for around 30-35 per cent of the total travel distance.
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