Hyundai and Kia Exit Ola Electric, Sell Stake for INR 690 Cr
The two auto giants, part of the same South Korean group, had invested USD 300 million in Ola Electric in 2019.
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In a major strategic move, Hyundai Motor and Kia Corporation have exited Ola Electric, selling their entire stake in the company for a combined INR 690 crore through block deals on Tuesday, according to the Entrackr media reports.
The two auto giants, part of the same South Korean group, had invested USD 300 million in Ola Electric in 2019.
Hyundai sold its 2.47% stake for INR 552 crore, while Kia offloaded its 0.62% holding for INR 137 crore, according to data from the National Stock Exchange (NSE). The sale signals a retreat from their earlier electric vehicle (EV) investment in India.
Citigroup Global Markets Mauritius emerged as the primary buyer, acquiring a 1.95% stake worth INR 435 crore. However, the identities of the other buyers remain undisclosed, with more than 63% of the stake going to unnamed investors.
The exit follows a disappointing financial performance by Ola Electric in Q4 FY25. The company reported a net loss of INR 862 crore, more than double the INR 418 crore loss from the same quarter last year. Operating revenue fell sharply by nearly 50% year-on-year to INR 611 crore. For the full fiscal year, the company's net loss widened to INR 2,276 crore.
Ola Electric's shares dropped over 8% on Wednesday, closing at INR 49.61 and lowering its market valuation to INR 21,882 crore (USD 2.57 billion). While Hyundai and Kia's exit reduces the firm's strategic backing, Citi's investment shows there is still some investor confidence. The key question now is whether Ola Electric can steer itself toward profitability by FY26.
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