Gensol EV, a subsidiary of Gensol Engineering, is currently facing significant operational challenges, leading to the dismissal of approximately 50 employees from its workforce of 170. This decision has raised concerns among the remaining staff, as many have reportedly not received their salaries since February.
Employee Layoffs and Salary Delays
The recent layoffs represent a drastic measure, with the company shedding around 35-40% of its workforce at Gensol EV. A spokesperson for the company explained, “Navigating these tough times necessitates restructuring to secure our businesses’ future. This was not an easy choice, but one we felt was essential.”
As for salary payments, the company acknowledged the delays, stating, “We are dedicated to ensuring all employees receive their compensation on schedule. Although there have been some setbacks, we are actively addressing the issue to guarantee timely payments moving forward.”
Credit Downgrade and Operational Challenges
This troubling news coincides with Gensol Engineering’s recent downgrade to default status by two credit rating agencies. This financial strain has compounded challenges for the company, particularly as BluSmart, a ride-hailing service co-founded by Gensol’s promoters, has recently canceled its planned operational restructuring. Additionally, several senior leaders have departed from BluSmart amid these changes.
Gensol’s Ambitious Electric Vehicle Plans
Established in 2012, Gensol Engineering specializes in engineering, procurement, and construction (EPC) services for solar power plants. As part of its expansion into electric vehicles (EVs), Gensol has set up a new manufacturing facility in Chakan, Pune, under the Gensol EV brand. This facility aims to produce electric three-wheelers and four-wheelers. In January, Gensol introduced two new models: the EZIO, a two-seater electric car, and the EZIBOT, a cargo vehicle. Despite announcing 30,000 pre-orders, the company has struggled to fulfill these commitments, according to various sources.
Commitment to Future Production
Despite the hurdles it currently faces, Gensol remains determined to advance its electric vehicle production plans. The company is optimistic about overcoming these challenges and continuing its push into the EV market.
For more insights on Gensol’s journey, you might want to explore articles on the evolving landscape of electric vehicles and the impact of financial fluctuations on the automotive sector.
