BluSmart collapse: Banks, lessors rush to offload 2,000 EVs, says report
Following the suspension of ride-hailing startup BluSmart's operations last month, banks, leasing firms, and climate financiers are scrambling to sell or reassign 1,500–2,000 electric vehicles that were once part of its fleet, The Economic Times has reported.With BluSmart unable to raise funds and its founders facing regulatory heat, several financiers have begun repossessing the EVs they leased or financed and are now either seeking buyers or looking to lease them to new operators. Wealthy individuals and non-banking finance companies (NBFCs) are also part of the group trying to recover their investments, according to people familiar with the matter.advertisementDelhi-based all-electric taxi service Evera has already inducted 300 EVs into its fleet and is in talks to lease another 800 to 1,000 vehicles, as per the ET report. Uber-backed Everest Fleet is also evaluating the purchase of a chunk of the cars but hasn't finalised a deal yet.
'There's a section of lessors who are in the business of leasing and will find takers,' a person briefed on the matter said. 'But financial institutions want to sell outright to recover money. Several small fleet operators are also being approached.'Multiple leasing firms, including Japan's Orix Leasing, Delhi-based Clime Finance, SMAS Auto Leasing, and Shefasteq OPC Pvt Ltd, have moved the Delhi High Court to prevent BluSmart or its associate firm Gensol Engineering from creating third-party rights over these vehicles.Before halting operations in April, BluSmart had a fleet of around 8,000 electric cars, of which roughly 5,000 were owned or leased by Gensol Engineering—and then sub-leased to BluSmart. A few hundred EVs were directly owned by the company itself.advertisementGensol's controversial dealings and the Sebi order against cofounders Anmol Singh Jaggi and Puneet Singh Jaggi for alleged fund diversion and document forgery have further derailed potential recovery. Both stepped down from Gensol Engineering's board following the Sebi action.Meanwhile, Power Finance Corp and the Indian Renewable Energy Development Agency were mulling an auction of the EVs they helped finance. But time is running out—industry players warn that unused EVs can depreciate rapidly.'If the batteries are not charged and the cars not run, performance degrades fast. These could soon turn into liabilities,' an industry insider was quoted as saying in the ET report.Potential buyers, meanwhile, are waiting for prices to crash, with some reportedly quoting as low as 10% of the original asset cost.Trending Reel
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