Hyundai, Kia sell Ola Electric shares worth $80 million amid sales slump – Bike News

Ola Electric’s stock has fallen by 46% since its market debut in August 2024.

Bad times don’t seem to end for Ola Electric as it continues to find itself in the eye of a storm. Hyundai Motor Company has sold its entire stake in Ola Electric, while fellow South Korean automaker Kia Corporation has reduced its holding, as per recent exchange filings. The total value of the share sale amounted to Rs 6.89 billion (approximately $80 million). 

Hyundai, which previously held a 2.47% stake in the electric two-wheeler firm, offloaded its shares at ₹50.70 each. Kia, meanwhile, sold 0.6% of its stake at a slightly lower price of Rs 50.55 per share.

While Hyundai’s exit marks a complete disassociation in terms of shareholding, Kia’s remaining interest is unclear, as stock exchange disclosures do not mandate reporting of holdings below 1%. Both share disposals were executed at a discount of nearly 6% relative to Ola Electric’s closing price on the preceding trading day, leading to an 8% decline in the company’s stock on Tuesday.

Ola Electric Faces Market Headwinds

The divestment by Hyundai and Kia follows a challenging period for Ola Electric, which has been facing pressure from slowing sales, intensifying competition, and increasing regulatory scrutiny. The company’s stock has fallen by 46% since its market debut in August 2024, indicating diminishing investor confidence.

Ola Electric, led by Bhavish Aggarwal, had previously received a combined investment of $300 million from Hyundai and Kia in 2019, aimed at joint development of electric vehicles and related infrastructure. However, the recent share disposals suggest a strategic shift by both automakers amid Ola’s ongoing struggles. 

The Bengaluru-based EV manufacturing startup recently reported a widened net loss for the fourth quarter and projected a revenue decline for the first quarter of the current financial year, attributed largely to steep discounts offered to stay competitive in the EV segment.

With inputs from Reuters

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This article was first uploaded on June five, twenty twenty-five, at fifty-eight minutes past one in the afternoon.

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