Hyundai & Kia Offload INR 690 Cr Stake in Ola Electric in Major Bulk Deal

Kia, another South Korean automaker, has decreased its ownership in the EV company, while Hyundai Motor has sold off all of its shares in Ola Electric. According to a news agency, the total share sale brought in about INR 6.89 billion ($80 million).

Hyundai, which had previously owned 2.47% of the company, sold its shares at INR 50.70 a share, according to exchange records made public on June 5.

At INR 50.55 per share, Kia sold off 0.6% of its ownership. Kia initially owned less than 1% of the company, and as exchange data does not show stakes below 1%, its present ownership is unknown. Ola Electric's share price dropped 8% on 5 June as a result of the disposals.

The stock fell as a result of both sales being priced at a discount of almost 6% to the closing price on 4 June. With intentions to work together on the development of electric vehicles and charging infrastructure with Bhavish Aggarwal's business, Hyundai and Kia had already invested $300 million in Ola Electric in 2019.

Ola Navigating Through Troubled Waters

For Ola Electric, the divestment occurs during a challenging period. The business has been battling declining sales, increased competition from well-known two-wheeler producers, and regulatory scrutiny.

Since August 2024, when it went public, its stock has fallen 46%. Ola Electric has predicted a drop in revenue for the first quarter of the new fiscal year and revealed a larger fourth-quarter deficit.

In order to combat competition, the company has been offering high discounts, which has put additional strain on its earnings.

In addition, Ola has come under further scrutiny for the way it counts car reservations and has been the target of searches and car seizures by local transport authorities for noncompliance with regulations. On the NSE, Ola Electric Mobility's shares fell 7.58% to settle at INR 49.61 per share.

Ola’s Recent Financial Dynamics

Ola Electric stated this week that it is aiming for profitability in the current fiscal year, despite reporting a consolidated net loss of INR 870 crore for the fourth quarter that ended on March 31, 2025.

In the January–March quarter of the fiscal year 2023–24, the corporation reported a net loss of INR 416 crore. According to the corporation, operating revenue decreased to INR 611 crore from INR 1,598 crore during the same time last year.

The company's net loss for FY25 was INR 2,276 crore, compared to INR 1,584 crore for the fiscal year 2023–2024. It further stated that its operating revenue decreased to INR 4,514 crore from INR 5,010 crore in FY24.