Gensol EV recently laid off 50 employees, which accounts for about 35-40% of its workforce. Many of these employees have not received their final settlements, and some have not been paid since February. The company attributed the layoffs to a restructuring effort aimed at ensuring long-term sustainability.
In response to employee concerns, Gensol EV admitted there were delays in salary payments but assured that they are working on resolving the issue. They have also committed to ensuring that future payments are made on time.
The financial troubles extend beyond the EV division. Gensol Engineering, the parent company, has seen its borrowing status downgraded to “default” by two credit rating agencies. Additionally, BluSmart, a ride-hailing company co-founded by Gensol’s promoters, is also undergoing restructuring. Adding to the turmoil, several senior executives have resigned in recent months.
Despite these setbacks, Gensol EV continues to pursue its expansion plans. The company has set up a greenfield EV manufacturing facility in Chakan, Pune, focusing on producing electric three-wheelers and four-wheelers. In January 2024, the company showcased two EV models at the Bharat Mobility Global Expo and announced 30,000 pre-orders. However, none of these orders have been fulfilled yet, raising doubts about production and delivery capabilities.
Even with ongoing challenges, Gensol EV remains committed to its vision of expanding in the electric vehicle market. The company’s future will largely depend on its ability to stabilize its financial health, address employee concerns, and successfully deliver on its EV production promises.