Hyundai Motor Company, the South Korean automotive major, has exited Ola Electric Mobility, selling its entire 2.47% stake for approximately ₹552 crore through open market deals. The transaction, executed on Tuesday, June 3, 2025, was reported in the bulk deal data released by the National Stock Exchange (NSE).

Hyundai disposed of over 10.88 crore shares of Bengaluru-based Ola Electric Mobility, with shares priced at an average of ₹50.70 apiece. The total transaction value came to ₹551.96 crore, marking a strategic divestment by one of Ola Electric’s earliest international investors.

In a parallel transaction, Kia Corporation, which is part of the same Hyundai-Kia Automotive Group, sold more than 2.71 crore shares, representing a 0.62% stake in Ola Electric. These shares were sold at an average price of ₹50.55 per unit, translating to a deal worth ₹137.35 crore.

Together, Hyundai and Kia sold shares worth ₹689.31 crore, fully exiting their investment in Ola Electric.

Citigroup steps in as key buyer

On the other side of the deal, Citigroup Global Markets Mauritius purchased over 8.61 crore shares, acquiring a 1.95% stake in Ola Electric for ₹435 crore. The shares were bought at an average price of ₹50.55 each, aligning closely with Kia’s sale price. This acquisition by Citigroup reflects continued foreign institutional interest in the electric mobility space in India, even amid Ola Electric’s financial stress.

Details of other buyers participating in the stake acquisition were not disclosed by the NSE.

Following the large-volume trades, the share price of Ola Electric Mobility dropped sharply by 7.58%, closing at ₹49.61 per share on the NSE.

Financial stress continues for Ola Electric

The bulk stake sales come just days after Ola Electric reported disappointing financial results for the quarter and fiscal year ended March 31, 2025. The company recorded a consolidated net loss of ₹870 crore in Q4 FY25, significantly widening from a loss of ₹416 crore during the same quarter in the previous financial year.

The company's revenue from operations for the quarter declined to ₹611 crore, down from ₹1,598 crore in the corresponding period of FY24. The drop in revenue and deepening losses raise concerns about Ola Electric’s profitability roadmap, especially as the company continues to invest in R&D, battery tech, and manufacturing expansion.

For the full financial year FY25, Ola Electric reported a net loss of ₹2,276 crore, compared to a net loss of ₹1,584 crore in FY24. Its annual revenue from operations also saw a decline, dropping to ₹4,514 crore from ₹5,010 crore in FY24.

Despite the mounting losses, Ola Electric has publicly stated its aim to achieve profitability in the current fiscal year, but industry observers believe it may require substantial operational improvements and possibly more funding support or strategic partnerships.

Strategic exit raises questions

The exit of Hyundai and Kia—once seen as strategic investors aligned with Ola Electric’s growth vision—raises questions about long-term international confidence in the company. Both automakers had entered into partnerships with Ola in previous years, exploring potential collaboration on EV development, localisation, and charging infrastructure.

Their complete withdrawal could signal diverging strategic priorities, possibly influenced by Ola Electric's delayed timelines, restructuring of business plans, or investor-specific exit triggers.

While Citigroup’s acquisition shows a degree of institutional optimism, the company's shrinking revenues, rising losses, and stock volatility may create pressure on Ola to demonstrate turnaround measures quickly.

Sectoral context

The electric vehicle (EV) industry in India remains a high-potential, high-burn space, with companies investing aggressively in technology, battery sourcing, and production scaling. Ola Electric is currently one of the country’s leading EV two-wheeler manufacturers, and has ambitions to foray into electric cars and lithium cell production through its FutureFactory and Gigafactory plans.

However, achieving profitability in such a capital-intensive and competitive market has proven difficult for many EV players. Ola Electric’s performance over the next few quarters will be closely watched by analysts, investors, and regulators alike.

What lies ahead

As Ola Electric navigates financial challenges and post-exit stakeholder dynamics, it must strengthen investor confidence, meet delivery and product roadmap commitments, and stabilise its cash flows. The exit of Hyundai and Kia marks a notable shift in shareholder sentiment, and the entry of institutional players like Citigroup could bring new expectations for governance, transparency, and financial discipline.

How Ola Electric adapts and responds will determine whether it remains a dominant EV player in India's future mobility landscape or needs to restructure its vision to align with ground realities.

The Upcoming IPOs in this week and coming weeks are Jainik Power Cables, Sacheerome Limited, Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are Ganga Bath Fittings.

The Closed IPOs are 3B Films.