Hyundai exits India's Ola Electric

NEW DELHI: Hyundai Motor sold its entire stake in Ola Electric, while rival South Korean carmaker Kia trimmed its holding, in a combined share sale worth 6.89 billion rupees (US$80 million), according to exchange data.

Hyundai, which held a 2.47% stake in the company, sold shares at a price of 50.70 rupees, while Kia offloaded 0.6% of Ola Electric shares for 50.55 rupees, the data showed on Tuesday.
Kia held a less than 1% stake in Ola Electric.

Its current holding is not known as exchange data does not disclose stakes below 1%.

Ola Electric's shares slumped 8% on Tuesday as both disposals were at a nearly 6% discount to its closing price on Monday.

Hyundai and Kia had invested US$300 million in the Bhavish Aggarwal-led Ola in 2019 to collaborate on developing electric vehicles and their charging infrastructure.

The disposals come at a time when the company is grappling with slowing sales, regulatory pressure and competition from established two-wheeler makers.

Its shares have dropped 46% since going public in August 2024.

The Bengaluru-based company had reported a wider fourth-quarter loss and also forecast a revenue decline in the first quarter of the current fiscal amid steep discounts it has been offering to weather competition.