In a striking turn for India’s electric vehicle (EV) landscape, Hyundai Motor and Kia Corporation have officially exited Ola Electric, selling off their entire stake in the startup for a combined ₹690 crore through block deals this Tuesday.
Once hailed as key global allies in Ola Electric’s ambitious EV journey, the South Korean auto majors seem to be hitting the brakes on their India-specific EV bet — at least for now.
According to NSE bulk deal data, Hyundai offloaded a 2.47% stake worth ₹552 crore, while Kia sold its 0.62% holding for ₹137 crore, bringing an end to a five-year-old partnership that began with a much-hyped $300 million investment in 2019.
While Citigroup Global Markets Mauritius emerged as a known buyer, picking up 1.95% (8.61 crore shares) for ₹435 crore, the rest of the shares were snapped up by undisclosed investors — a move that raises eyebrows about who still believes in Ola Electric’s long-term story.
This stake sale comes at a time when Ola Electric is navigating turbulent financial waters. The company reported a consolidated net loss of ₹862 crore in Q4 FY25, more than double its loss in the same quarter the previous year. Even more concerning: its operating revenue halved year-over-year, falling to just ₹611 crore.
For the full FY25 fiscal, Ola’s net loss ballooned to ₹2,276 crore, compared to ₹1,584 crore in FY24 — signs that the road to profitability may still be long and winding.
Market reaction was swift. Ola Electric’s stock tumbled over 8%, closing at ₹49.61 on Wednesday, pushing its market cap down to ₹21,882 crore ($2.57 billion).
The exit of Hyundai and Kia raises important questions about Ola Electric’s strategic direction and investor confidence. While the company continues to position itself as a key player in India’s EV transition, it now moves forward without two of its most prominent backers.
Still, Citi’s move shows that not all is lost — institutional belief in Ola’s potential may still exist, though now paired with caution and a demand for accountability.
With the IPO fresh in memory and the clock ticking on FY26 profitability goals, all eyes are now on Bhavish Aggarwal and team to steer Ola Electric out of this slump — and back onto the fast lane.
