KATHMANDU: Hyundai Motor Company has made a full exit from Ola Electric by selling its entire 2.47% stake in the Indian company. Likewise, fellow South Korean company, Kia, has also offloaded 0.6% of Ola Electric shares, according to recent filings on Indian stock exchanges.
Hyundai and Kia had together invested $300 million in Ola Electric in 2019 to support the development of electric vehicles and charging infrastructure in India under the leadership of Ola founder Bhavish Aggarwal.
As the Korean automotive giants reduced their investments, Citigroup Global Markets Mauritius bought Ola Electric shares worth $52.45 million during the same trading session, as per news reports.
Ola Electric’s shares fell by 8% on the next trading day. Since its public listing in August 2024, the company’s share value has dropped by nearly 46%.
The Indian company is currently facing several challenges, including slowing sales, increasing competition in the two-wheeler EV segment and tighter regulatory oversight. These factors have contributed to declining market confidence.
With early strategic investors like Hyundai and Kia scaling back or exiting, focus has now shifted to Ola Electric’s next move. Market observers are closely watching how the company plans to manage liquidity, boost operational efficiency and rebuild investor trust.
Ola, founded in 2010, is one of India’s leading ride-sharing platforms, offering app-based taxi, auto-rickshaw and bike services. It later diversified into electric mobility through Ola Electric and has also expanded to international markets including Australia, New Zealand and the United Kingdom.
