Hyundai, Kia Sell Stake in Ola Electric, Exacerbating Share Slump

South Korean automakers Hyundai Motor and Kia sold about 136 million shares in Ola Electric Mobility on Tuesday, just days after the Indian e-scooter firm posted quarterly losses that had more than doubled. 

While Hyundai offloaded 108.8 million shares at an average price of 50.7 rupees (59 cents), Kia sold 27.17 million shares at Rs. 50.55 a share, according to bulk deals data from the NSE website. Citigroup Global Markets Mauritius bought 86.15 million shares, the data show.

Ola Electric shares fall after 3.3 percent of Equity Traded in Blocks

The share sale comes as the Bhavish Aggarwal-led firm faces multiple crises, marred by operational delays, weak demand and rising competition. Ola's shares slumped 8.1 percent on Tuesday, the most in seven months. This pushed this year's plunge to 42 percent, after a blockbuster listing in August.

Ola has also been under increased scrutiny over its method of counting vehicle bookings as well as seen raids and vehicle seizures by local transport officials for lapses in regulatory compliances.

Hyundai held a 2.47 percent stake, or about 108.9 million shares, in Ola as of March 31, according to stock exchange data. Tuesday's sale could mean it exited the investment. Kia's shareholding in Ola wasn't immediately known as stakes of less than one percent aren't typically disclosed to stock exchanges.

The two Korean automakers, which are part of the Hyundai Group, had invested $300 million (roughly Rs. 2,578 crore) in Aggarwal's venture in March 2019. The investment, touted as their “biggest combined investment till date,” was part of the “continued efforts to become a Smart Mobility Solutions Provider.”

© 2025 Bloomberg LP

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)