In a significant shake-up in India’s EV space, Hyundai Motor Company has exited Ola Electric entirely, selling off its 2.47% stake. Its affiliate, Kia Corporation, also pared down its holding by 0.6%. The total share sale raised approximately ₹6.89 billion (around $80 million), signaling a strategic retreat from their once-promising investment in the Indian EV startup.
Hyundai sold its shares at ₹50.70 each, while Kia’s were offloaded at ₹50.55 — both priced nearly 6% lower than Ola Electric’s previous closing. This discount triggered an 8% drop in Ola Electric’s stock, intensifying concerns among investors.
Strategic Pivot in Motion
Back in 2019, the Hyundai-Kia duo had infused $300 million into Ola Electric with hopes of co-developing electric vehicles and charging infrastructure tailored to Indian roads. But tides have turned. Hyundai is now restructuring its global strategy, particularly in response to escalating US tariffs.
The automaker has set up a dedicated task force and is reportedly relocating the production of its popular Tucson crossover from Mexico to the US. With nearly two-thirds of Hyundai and Kia’s US sales dependent on imports, their EV game plan is being reoriented toward safeguarding American market share.
Ola Electric: A Bumpy Ride Since Listing
The timing couldn’t be worse for Ola Electric. Since its IPO in August 2024, the company has seen a 46% nosedive in share value. Sluggish sales, regulatory scrutiny, and fierce competition from traditional two-wheeler giants have taken a toll.
Its latest quarterly report revealed widening losses and projected revenue shrinkage for Q1 FY26. The blame? Heavy discounting in a cut-throat market and uncertain demand recovery.
What This Means
The moves by Hyundai and Kia are more than just portfolio clean-ups — they signal a larger strategic withdrawal from risky, high-volatility EV bets in India, at least for now. For Ola Electric, this exit adds to its mounting challenges in achieving profitability and retaining investor trust.