Hello,
You have gotten a lot of great advice on here but I wanted to add something in so you might not worry so much. I've had one girl and two boys. At the age of 2 my daughter was talking pretty clearly, enough to where we could at least understand her.
My boys are now 4 and 2. My 4 yr old diddn't start talking clearly until the age of 3. It was like night and day when he hit 3. Everything came out so clear and perfect and he never once was seen by an ECI or speech therapist. My 2 yr old (turned 2 in April) is pretty much the same as my first son, speaks a little but not very clear but understands a lot of what we say.
He's pretty much at the age where only the parents can still tell what he's saying. Is your grandson speaking at all? Even trying?? If yes, then don't worry yourself, give him some more time, he's barely 2. If he never even tries or doesn't even say mama or dada, then I suggest your daughter take the advice of your previous answers and look into speech therapy or ECI.
The other characteristics you mentioned just remind me of a typical shy 2 yr old boy. Most 2 yr olds are not going to sit still for a speech therapy class anyway so don't let that worry you, that's just being a 2 yr old.
So anyhow, IMO he's still very young and sounds like he could just use some more time. I wouldn't let myself worry until he's 3 and no improvement has been seen yet. Until then, just have her keep working with him but don't push it and don't worry. Every child develops differently, some slower some faster. BTW, I have a 2 yr old niece (6 weeks older than my son) that can count to 10, knows her alphabet, recognizes colors, etc. I think she's one of the smartest kids I've ever seen, I don't think my son's any less smart becuase he's not doiing those things, I think sometimes boys just learn at slower paces.
Take care and best wishes.