MUMBAI: In a significant development in India’s electric vehicle (EV) landscape, South Korean automotive giants Hyundai Motor Company and Kia Corporation have completely exited their investments in Ola Electric Mobility, selling their entire holdings for a cumulative amount of ₹690 crore, as per data disclosed in bulk deals on the National Stock Exchange (NSE).
According to the NSE filing, Hyundai divested 10.88 crore shares at an average price of ₹50.70 per share, raking in approximately ₹552 crore, while Kia offloaded 2.71 crore shares at ₹50.55 per share, amounting to about ₹138 crore. As of March 31, Hyundai held a 2.47% stake in Ola Electric, whereas Kia owned 0.62%.
Citigroup Emerges as Key Buyer
One of the most notable participants in the transaction was Citigroup Global Markets Mauritius, which reportedly acquired 8.61 crore shares, worth over ₹435 crore, at a discounted rate of ₹50.55 per share. This represents a 6% markdown compared to Monday’s closing price of ₹53.69.
Financial Turmoil at Ola Electric
The exit by Hyundai and Kia comes at a time when Ola Electric is facing increased scrutiny over its financial performance. In the quarter ended March 2025, the company posted a consolidated net loss of ₹870 crore, more than double the ₹416 crore loss it reported in the same quarter a year earlier. Revenue for the quarter plunged over 60%, dropping to ₹611 crore from ₹1,598 crore.
For the full financial year, Ola Electric’s losses swelled to ₹2,276 crore, compared to ₹1,584 crore in FY24. Annual revenue also witnessed a downturn, falling to ₹4,514 crore from ₹5,010 crore.
Valuation Drops Post-IPO High
The timing of the sell-off is particularly noteworthy as it follows a sharp decline in the company’s valuation. As of Wednesday, Ola Electric’s market capitalization stood at ₹21,882 crore (approximately $2.57 billion), a significant drop from its peak earlier in the fiscal year, following its much-publicized initial public offering (IPO).
Strategic Implications
Hyundai and Kia had initially invested in Ola Electric with a strategic outlook on India’s fast-evolving electric mobility ecosystem. Their exit signals a potential shift in sentiment amid growing concerns around Ola Electric’s profitability, sustainability, and competitive positioning in an increasingly crowded EV market.
While Ola Electric remains one of the key players in India’s EV space, the high-profile exit of two global automotive giants raises questions about investor confidence and the company’s path to financial stability.
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