Hyundai Motor and Kia Corporation have sold their stakes in EV maker Ola Electric through open market sales on June 3.

Hyundai sold its 2.47% stake, over 10.8 crore shares, at an average price of 50.7 rupee (US$0.59) per share, totaling 552 crore rupee (US$64.2 million).

Kia sold 2.71 crore shares at 50.55 rupee (US$0.59) per share, worth 137.3 crore rupee (US$16 million).

Citigroup Global Markets bought 8.6 crore shares at 50.55 rupee (US$0.59) per share during the same session.

The transactions come as Ola Electric faces financial and operational struggles. The company posted a Q4 FY25 loss of 870 crore rupee (US$101.2 million), up from 416 crore rupee (US$48.4 million) a year earlier.

Since its August 2024 listing, Ola’s share price has dropped around 43% year-to-date.

🔗 Source: YourStory

🧠 Food for thought

1️⃣ Legacy automakers demonstrating competitive advantage in EV transition

TVS Motor and Bajaj Auto have overtaken Ola Electric in market share, showing how established manufacturers can leverage their infrastructure for EV success.

Legacy players now hold the top positions with TVS capturing 24.49% market share (24,563 units) and Bajaj reaching 21.71% (21,777 units) in May 2025, while Ola’s share has fallen to 18% 1.

This shift demonstrates how traditional manufacturers can effectively combine existing manufacturing expertise, distribution networks, and brand trust with new EV technology.

Ola’s sales have dropped dramatically from 37,388 units in May 2024 to just 18,500 units a year later, representing a decline of over 50% year-over-year 1.

This trend reflects challenges faced by EV-only startups globally when competing against established automotive companies that have successfully pivoted to electric offerings.

2️⃣ Strategic divestment signals concern about India’s EV market maturity

Hyundai and Kia’s exit from Ola Electric through a ₹690 crore ($83 million) stake sale indicates growing skepticism about the near-term growth trajectory of India’s EV market.

Recent Ola Electric developments