Gensol EV, a subsidiary of Gensol Engineering, has recently laid off 50 employees, representing approximately 30-40% of its workforce.
This decision comes as the company grapples with significant financial challenges, including delays in salary payments and difficulties in fulfilling pre-orders for its electric vehicles (EVs).
The layoffs are part of a broader restructuring effort aimed at ensuring the long-term sustainability of the business.
Financial Struggles and Layoffs at Gensol EV
The layoffs coincide with a challenging period for Gensol Engineering, the parent company of Gensol EV.
Gensol Engineering has faced a downgrade in its borrowing status to default by two rating agencies, further exacerbating its financial woes.
The terminated employees, many of whom have not received their full and final settlements, are among the 170 staff members employed by Gensol EV.
Additionally, some employees have reported delays in salary payments since February 2025.
A company spokesperson acknowledged the difficulties, stating, “Given the challenging circumstances we are navigating as a group, we have to undertake certain restructuring measures to ensure the long-term sustainability of our businesses.”
They added, “We have had to make the difficult decision to let go of 35-40% of our employee base at Gensol EV.”
Challenges in EV Production
Gensol EV has been unable to fulfill its ambitious target of delivering 30,000 pre-orders for its newly launched electric vehicles.
The company had unveiled two models, the EZIO (a two-seater electric car) and the EZIBOT (a cargo vehicle), at the Bharat Mobility Global Expo in January 2025.
Despite receiving a positive response and securing pre-orders, the company has struggled to meet production demands due to financial constraints.
Gensol EV established the greenfield EV manufacturing facility in Chakan, Pune, to bolster its footprint in the electric vehicle sector.
However, the current financial challenges have hindered its ability to scale operations and deliver on its commitments.
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