The fallout from BluSmart’s suspension last month is creating a scramble among banks, leasing firms, and climate financiers to offload or reassign roughly 1,500 to 2,000 electric vehicles (EVs) that were part of its fleet, according to The Economic Times.
BluSmart, once operating an all-electric taxi fleet of around 8,000 cars, has faced a funding crunch and regulatory troubles involving its founders. Around 5,000 EVs were owned or leased by its associate firm Gensol Engineering and sub-leased to BluSmart, while the company itself directly owned a few hundred vehicles.
What’s Happening with the EV Fleet Now?
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Multiple financiers and leasing firms, including Orix Leasing (Japan), Clime Finance (Delhi), SMAS Auto Leasing, and Shefasteq OPC Pvt Ltd, are actively seeking buyers or new lessees for these vehicles to recover their investments.
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Legal battles are underway to prevent BluSmart or Gensol from creating third-party rights over the EVs, with several firms moving the Delhi High Court.
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Wealthy individuals and NBFCs are also trying to recoup their money by selling or leasing the vehicles.
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Evera, a Delhi-based all-electric taxi service, has already inducted 300 EVs and is in talks to lease another 800-1,000 cars.
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Uber-backed Everest Fleet is also evaluating purchasing a portion but has yet to finalize any deals.
Complications in Recovery
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The Sebi order against BluSmart co-founders Anmol Singh Jaggi and Puneet Singh Jaggi for alleged fund diversion and document forgery has further complicated matters. Both resigned from Gensol Engineering’s board following the regulatory action.
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The controversial dealings at Gensol and regulatory scrutiny have slowed down recovery efforts.
Financial and Operational Risks
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Power Finance Corp and Indian Renewable Energy Development Agency are considering auctions of the financed EVs.
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However, time is a critical factor: unused EVs, especially their batteries, deteriorate quickly if not charged or operated regularly.
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Industry insiders warn these vehicles could rapidly turn into liabilities if left idle.
Market Outlook for the EVs
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Potential buyers are holding off, waiting for a steep price correction.
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Some quotes suggest prices as low as 10% of the original asset value, reflecting the distressed nature of the assets.
In summary, BluSmart’s shutdown has triggered a rapid unwinding of a large electric vehicle fleet, but regulatory issues and operational risks are making the recovery and resale process complex and urgent. The market is watching closely, with opportunistic buyers waiting to scoop up assets at bargain prices—if they can manage the technical and legal hurdles.
