Hyundai has exited Ola Electric, selling its entire 2.47% stake, while Kia also reduced its holding. Together, they sold shares worth ₹6.89 billion ($80 million), according to Reuters.
For Ola Electric, the timing couldn’t be worse. The EV startup, once hailed as India’s next unicorn powerhouse, is now watching its stock price fall—8% in one day, and 46% since its August 2024 IPO.
Hyundai and Kia had once put $300 million into Ola with dreams of joint EV development. Today, that dream seems unplugged.
Hyundai offloaded its shares at ₹50.70 each, while Kia sold at ₹50.55. Both rates were almost 6% below Monday’s closing price—another sign that they were eager to get out fast. Kia still owns less than 1% but hasn’t disclosed the exact amount left.
Ola Electric’s bumpy ride
The company is losing money, fast. Sales are slowing. Discounts are growing. Its latest quarterly results showed bigger losses and weaker forecasts. Add to that: regulatory scrutiny and fierce competition from giants like TVS and Bajaj. It’s like bringing a scooter to a tank fight.
And now? Investors are bailing. First the numbers turned red. Now the boardroom is following suit.
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Meanwhile, Hyundai’s looking West
While it walks away from Ola, Hyundai is focused on surviving US tariffs. The company just created a task force to handle trade shocks and has already shifted some Tucson production from Mexico to Alabama.
Hyundai, alongside Kia, is the world’s third-largest carmaker. But it’s heavily exposed in the US, where about one-third of its sales come from—and most of those cars are imported. That’s a costly mix when Washington starts slapping on tariffs.
To stay competitive, Hyundai has committed $21 billion to expand its U.S. presence, including a massive factory in Georgia. But it’ll take time. Until then, they’re racing to localize parts and move assembly stateside.
Why it matters
This is a turning point. Ola Electric, once a poster child for India’s EV ambition, is now bleeding investor confidence. Hyundai’s exit speaks volumes—not just about Ola, but about how fragile the EV space still is in emerging markets.
And for Hyundai? It’s not just playing the EV game—it’s playing the global trade chessboard. Ola was a pawn. The U.S. market is king.
