Hyundai Motor sold its entire stake in Ola Electric, while rival South Korean carmaker Kia trimmed its holding, in a combined share sale worth 6.89 billion rupees ($80 million), according to exchange data.
Hyundai, which held a 2.47% stake in the company, sold shares at a price of 50.70 rupees, while Kia offloaded 0.6% of Ola Electric shares for 50.55 rupees, the data showed on Tuesday.
Also Read: Delhi To Allow Only BS6, CNG, And EV Commercial Vehicles From November 1
Kia held a less than 1% stake in Ola Electric. Its current holding is not known as exchange data does not disclose stakes below 1%.
Ola Electric's shares slumped 8% on Tuesday as both disposals were at a nearly 6% discount to its closing price on Monday.
Hyundai and Kia had invested $300 million in the Bhavish Aggarwal-led Ola in 2019 to collaborate on developing electric vehicles and their charging infrastructure.
The disposals come at a time when the company is grappling with slowing sales, regulatory pressure and competition from established two-wheeler makers. Its shares have dropped 46% since going public in August 2024.
The Bengaluru-based company had reported a wider fourth-quarter loss and also forecast a revenue decline in the first quarter of the current fiscal amid steep discounts it has been offering to weather competition.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)