Stalling India’s EV momentum, BluSmart’s sudden shutdown strands 9000 electric cars, shocking automakers like Tata and Citroën. The future of Fleet EV faces a hard reboot.
India’s electric vehicle (EV) industry has taken a major hit as BluSmart, a leading all-electric fleet operator, unexpectedly shut down operations, following SEBI’s allegation of financial misconduct. This abrupt halt has left over 9000 EVs undelivered, mostly from Tata Motors and Citroën, who now face significant inventory pile-ups.
According to a report by Financial Express, BluSmart had agreed to purchase 18,000 vehicles, with over 90 per cent of the order placed with Tata Motors and Citroën. Tata had pledged 13,500 units, and Citroën 4000. Only around 7500 Tata cars and fewer than 500 Citroën EVs had been delivered before the company collapsed.
The shutdown leaves OEMs scrambling. The report revealed that the manufacturers have already written off BluSmart’s orders. Industry insiders say demand for bulk EV fleet purchases has all but disappeared, worsened by the end of government incentives like FAME-II.
BluSmart had previously aimed to deploy 100,000 EVs by 2025. It operated 8500 vehicles before suspending services. Vehicles were also sourced from MG Motor, BYD, Mahindra, Hyundai, and Audi.
Experts have warned that this crisis will force automakers to rethink strategies, possibly selling excess stock at deep discounts. OEMs may need to overhaul their risk models and sales approaches.
Meanwhile, fleet operators remain sceptical of EV economics. High purchase costs and limited operational savings compared to CNG alternatives have kept demand low. For example, a Tata Tigor EV starts at almost ₹1.25 million, while the CNG version begins at ₹770,000.
Additionally, EVs face challenges like poor after-sales support, reliability concerns, and slow market adoption. Other players, including Uber, have shown minimal EV uptake, with just 6000 EVs in use across a fleet of 400,000.
Analysts fear this could derail India’s already sluggish EV adoption, with fleet sales playing a vital role in driving volume.
Read more: Inside BluSmart’s Stunning Fall After SEBI Crackdown Turns Green Ride Red
