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BluSmart had placed a massive order for 18,000 electric vehicles, of which more than 90% were meant to come from Tata Motors and Citroen.
This unexpected closure has left over 9,000 electric cars undelivered, directly affecting Tata Motors and French carmaker Citroën.
India’s electric vehicle (EV) industry has been dealt a major blow as BluSmart, the country’s largest all-electric cab fleet operator, suddenly shut down operations.
This unexpected closure has left over 9,000 electric cars undelivered, directly affecting Tata Motors and French carmaker Citroen — the biggest suppliers to BluSmart.
What Really Happened?
BluSmart had signed a massive agreement for 18,000 electric vehicles with multiple automakers, as per Financial Express. Of these, more than 90 percent were ordered from Tata Motors and Citroen. Now, with the company’s operations suspended, manufacturers may have to write off thousands of undelivered EVs.
Tata Motors had agreed to deliver around 13,500 units, while Citroen had committed to supplying 4,000 e-C3 models. According to industry insiders, Tata has already delivered about 7,500 EVs, mainly the e-Tigor and Xpres-T models. Citroen has delivered fewer than 500 vehicles so far. Other brands like MG, Mahindra, and Hyundai were meant to supply the rest.
BluSmart’s shutdown is not just a blow to automakers. It’s also a setback for India’s EV growth story. The company had once aimed to have 100,000 EVs on roads by 2025. Before its closure, it was operating a fleet of around 8,500 electric cars.
With thousands of electric vehicles now without buyers, manufacturers may be forced to sell them at deep discounts. Insiders also believe the demand for new fleet EVs has dried up completely.
Why EVs Still Struggle in the Fleet Market
Cab firms argue that EVs offer no big savings compared to CNG vehicles. Both fuel types cost around Rs 3/km in real usage. But EVs come with a Rs 3–4 lakh premium.
For example:
- Tata Tigor CNG starts at Rs 7.70 lakh (ex-showroom)
- Tigor EV starts at Rs 12.49 lakh (ex-showroom).
Operators also complain about limited EV support, higher costs, and lack of robust after-sales service.
Other Challenges for EVs in Fleets
Cost is not the only concern. Operators also complain about build quality, increasing competition, and poor after-sales service.
Even big names like Uber have not gone fully electric. Out of Uber’s 4 lakh taxis in India, only around 6,000 are EVs.
What This Means for India’s EV Growth
Fleet operators were seen as key drivers of EV sales in India. With BluSmart gone and others stepping back, India’s EV adoption may slow down further.
In FY25, EVs made up only around 3 percent of total passenger car sales and that number may not grow without support from the fleet segment.
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