BluSmart, Indias leading electric ride-hailing company, targets expanding its EV fleet to 100,000 units by 2025. However, with no affordable option in the sub-10 lakh price range, it hopes for the upcoming Maruti WagonR EV to be priced at INR 6 lakh
BluSmart Mobility, Indias biggest EV ride-hailing firm, has earmarked USD 1 Billion for its expansion plans, including bolstering its fleet from just 685 cars to more than a lakh cars by 2025. However, a challenge that the company faces right now is the lack of options in the electric car market, especially at the affordable end of the sphere. In line with this, it has reportedly expressed its interest in placing an order for 10,000 Maruti WagonR EVs in case its introduced at INR 6 lakh.
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BluSmart commenced operations in mid-2019 with a fleet of merely 70 cars. Now, however, it has 685 vehicles plying on Delhi-NCR roads. Moreover, it has signed a 3,500 car deal with Tata Motors through which it plans to expand its fleet to over 2,000 vehicles by the end of the financial year. The firm is even planning to expand its operations to other Tier I cities of the country. Also, the company is even gearing up for another round of funding after it bagged the USD 25 million Series A investment in September this year. By 2025, it aims to invest a total of USD 1 Billion towards capacity and operational expansion along with setting up an EV charging infrastructure.
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As mentioned, an issue that the firm faces right now is the lack of enough options in the electric car segment. Today, the most affordable electric car available in the market is the Tata Tigor, which starts at roughly INR 12 lakh. In comparison, ICE-powered fleet vehicles such as the Maruti WagonR are a lot more affordable. Speaking on this, Anmol Singh Jaggi, Founder and CEO, BluSmart Mobility has said, "I would have really loved if there was a small electric car for INR 6 lakh in the market today. I will put my neck out and say if somebody can bring such a car, for example if Maruti can bring in the Wagon R electric for that price, I would be the first in the queue with a 10,000 unit order. If you look around in the cities today you will actually see Wagon R is the ubiquitous taxi but we do not have an electric version. If we do, it will substantially expand the market for us. We would be thrilled and so would our investors.
What happens is that with an INR 10 lakh car we have to charge INR 17-19 per kilometer because only then is it feasible for business. If we have an electric car for INR 6 lakh then we can slash prices to INR 10-12 per kilometer. Imagine how the market will expand once that happens," he adds.
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In fact, even without an affordable, sub-10 lakh option, EVs have got more popular. This is largely due to the improvement in the EV charging infrastructure along with the ever-increasing price of petrol and diesel. Jaggi reveals that his company has been receiving requests from drivers who want to join the firm. Some of these have been associated with leading cab aggregators like Uber and Ola. It may be noted here that, unlike the aforementioned cab aggregators, BluSmart has an asset-heavy business model as it owns all the vehicles in its fleet. This, as per Jaggi, helps then ensure proper maintenance and deliver consistently high-quality service.
"It is clear that the future is electric for automobiles in general and for shared mobility it will happen sooner. On a unit economics perspective, an electric car still costs about INR 2 lakh more compared to a comparable diesel car which translates to about INR 5,000 more in EMI but the savings is INR 20,000 per month for diesel and INR 10,000 per month for CNG. So the dice is loaded heavily in favour of electric," he says. "A few years ago, the difference in price used to be INR 4-5 lakh while petrol and diesel as fuels were very competitively priced so the unit economics were starkly different. It is only logical that Ola and Uber will also join the league. But we are secure. An asset light model can never deliver the kind of service experience that we offer," he adds.
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So, what do you think of the expansion plans of BluSmart Mobility? Also, do you think the Maruti WagonR EV would be priced at INR 6 lakh? Do let us know through the comments section below. Join our 91Wheels Telegram and 91Wheels Whatsapp group to know more about vehicles, conduct discussions on your favourite ride and much more! Also, you can subscribe to our Youtube channel for video content on the latest from the world of cars and motorcycles.
Source - ET Auto
