Hyundai Motor has sold its entire 2.47% stake in Ola Electric, while fellow South Korean automaker Kia reduced its holding in a combined share sale valued at 6.89 billion rupees ($80 million), according to stock exchange data released on Tuesday.
Hyundai offloaded its shares at a price of 50.70 rupees per share, while Kia sold 0.6% of its stake at 50.55 rupees, both at a discount of nearly 6% to Ola Electric’s previous closing price. The transactions triggered an 8% drop in the company’s stock on the day.
Kia, which previously held less than a 1% stake, now holds an undisclosed amount, as exchange filings do not require reporting for holdings below that threshold.
Hyundai and Kia jointly invested $300 million in Ola Electric in 2019 to support electric vehicle development and charging infrastructure in India. The stake sales mark a significant step back from that partnership.
The move comes as Ola Electric faces a range of challenges, including slowing sales, intensifying competition from legacy two-wheeler manufacturers, and increased regulatory scrutiny. Since its listing in August 2024, the company’s shares have lost 46% of their value.
The Bengaluru-based EV maker reported a wider loss in the fourth quarter and forecast a revenue decline for the current fiscal’s first quarter, citing heavy discounting efforts aimed at retaining market share.
