Gensol Crisis: BluSmart Shutdown Shocks Tata Motors, Citroën, Impacting India’s EV Plans

India’s largest all-electric fleet operator, BluSmart, has suddenly shut down operations. This has created serious trouble for carmakers like Tata Motors and French brand Citroën. BluSmart had signed deals to buy 18,000 electric vehicles (EVs), but more than 9,000 of those were still waiting to be delivered. Over 90% of the pending orders were with Tata Motors and Citroën.

Gensol Engineering share price was trading at ₹105.17 on April 22, 2025, down 5% after a drop of ₹5.54.

Tata Motors and Citroen Left With Unsold Cars

Tata Motors had committed to supply 13,500 EVs and Citroën 4,000. So far, Tata has delivered around 7,500 cars — mostly e-Tigor and Xpres-T models — while Citroën has delivered fewer than 500 e-C3 units. Other companies that were supposed to supply EVs to BluSmart included MG Motor, BYD, Mahindra, Hyundai, and Audi.

As of April 22, 2025 at 1:56 PM, Tata Motors share price was trading at ₹632.05, up 0.32%, while Mahindra & Mahindra share price was trading at ₹2,816.10, up 1.88% on the NSE.

Insiders at Tata and Citroën revealed that they have already “written off” the BluSmart orders. As per news reports, one executive said that because thousands of used BluSmart vehicles are now entering the second-hand market, there is no demand for new EVs from fleet buyers.

No Buyers for Fleet EVs

 The end of BluSmart also impacts India’s electric vehicle dreams. EVs already struggle to sell, with only 3% penetration in passenger cars in FY25. Fleet operators like BluSmart were expected to help boost numbers. But now, even other taxi companies like Uber have shown little interest in going electric, with only about 6,000 EVs in use across India.

EVs are also seen as too expensive. For example, the Tata Tigor CNG starts at ₹7.70 lakh, while the Tigor EV costs ₹12.49 lakh. Both CNG and EVs cost about ₹3 per km to run, but EVs have a much higher upfront cost.

Conclusion

 BluSmart’s sudden closure is a big setback for India’s EV sector. It leaves manufacturers with excess inventory, slows EV adoption, and may force carmakers to cut prices or rethink their business plans.

Read more on: Gensol Crisis: Eversource Capital is in Talks to Buy BluSmart in ₹850 Crore Deal

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