As BluSmart’s fleet of electric vehicles lies idle and deteriorating, multiple lessors and potential acquirers are approaching original equipment manufacturers (OEM) such as Tata Motors to extend warranty coverage, an essential step if the beleaguered cab company’s stranded EVs are to be revived and put back into service.
Industry sources said that Tata Motors supplied an estimated 60-70% of BluSmart’s 8,700-strong fleet through its e-Tigor and Xpres-T models. However, talks around extending warranties, from the current 120,000 kilometres to as much as 170,000 kilometres, are still in early stages. The discussions are complex, involving not only payment negotiations but also uncertainty over who would ultimately shoulder the cost.
Nimish Trivedi, co-founder and CEO of Prakriti E-Mobility, which operates the Evera Cabs brand and has already taken over 200 BluSmart cars, stressed the importance of extended warranties for any further acquisition. “We have approached OEMs including Tata Motors. Vehicles produced from 2023 onwards could benefit. This could provide us the adequate cover required to acquire these vehicles and bring them back to a reasonable state for operations,” he said.
The stakes are high. BluSmart’s operations were abruptly suspended in April following a Sebi investigation into financial misappropriation by its co-founders. As a result, most of the EV fleet now sits idle across open lots in Delhi-NCR, Bengaluru, and Mumbai, exposed to heat, seasonal rains, and neglect. With little maintenance, vehicles are rapidly degrading. Sector experts say batteries, the heart of any EV, are at particular risk.
“If a battery stays at 0% for too long, it can become non-recoverable, requiring a full replacement that can cost 30–40% of the vehicle’s value,” said Shubham Mishra, CEO of Battery Ok Technologies. According to Mishra, the fleet’s batteries have already lost 5–10% of usable capacity, diminishing their range by as much as 30 kilometres. Beyond batteries, flat tyres, corroded brakes, water damage, and interior wear are further compounding recovery challenges.
According to Trivedi, more than 4,000 cars from BluSmart’s fleet risk becoming unusable within 15 days if left unattended. While Evera plans to eventually integrate up to 1,000 of these vehicles into its own platform, each acquisition is dependent on individual vehicle health and the possibility of warranty protection.
Beyond Prakriti E-Mobility, some other players are also exploring options to absorb parts of BluSmart’s fleet. However, industry sources said that progress is dependent on negotiations with OEMs like Tata Motors.
