Business

IIE DIGITAL DESK : The development in the Indian electric vehicle (EV) ecosystem, Hyundai Motor Company and its affiliate Kia Corporation have officially exited Ola Electric by offloading their entire stake in a bulk deal valued at approximately ₹690 crore. The move, executed just months ahead of Ola Electric's much-anticipated initial public offering (IPO), has drawn significant attention from industry analysts and market observers.

According to regulatory filings and market sources, both Hyundai and Kia sold their stakes in Ola Electric Mobility Ltd through secondary share sales on the private market. The bulk deal was executed through unlisted equity transfers, with the buyers believed to be a mix of high-net-worth individuals and institutional investors looking to get early exposure to Ola Electric ahead of its stock market debut.

The share sale by Hyundai and Kia marks the end of a strategic partnership that began in 2019, when the South Korean automakers jointly invested around $300 million in Ola and its electric mobility arm to explore synergies in shared mobility and EV development. However, despite initial optimism, the collaboration did not yield substantial long-term engagements in product development or manufacturing integration.

Ola Electric, backed by ANI Technologies and led by founder Bhavish Aggarwal, has emerged as one of India’s most prominent EV startups, primarily known for its electric scooters. The company is also working on ambitious plans to enter the electric motorcycle and electric car segments, as well as developing its own cell manufacturing capabilities under the government’s production-linked incentive (PLI) scheme.

Hyundai and Kia’s decision to exit Ola Electric comes at a crucial juncture. The startup is in the advanced stages of preparing for an IPO, which could be among the biggest public listings by an Indian startup in recent years. The public issue is expected to raise over ₹5,000 crore and may value Ola Electric at around ₹45,000–₹50,000 crore.

While neither Hyundai nor Kia has issued a public statement on the share sale, sources familiar with the matter suggest that the decision was part of a broader portfolio recalibration strategy. Both companies are now increasingly focusing on their own EV roadmaps for India, with Hyundai planning to launch multiple electric vehicles across segments and Kia actively investing in localized EV production and R&D.

The sale also raises questions about the future of strategic partnerships between traditional automotive giants and Indian startups in the fast-evolving EV space. Experts believe that while early investments in mobility platforms offered automakers a foothold in India’s emerging electric ecosystem, the shift toward self-reliant EV strategies is now taking precedence.

Bhavish Aggarwal, meanwhile, has reiterated Ola Electric’s commitment to building an integrated EV ecosystem, from design and manufacturing to battery production and software development. The company recently unveiled its electric scooter Gen-2 platform and continues to expand its network of Ola Experience Centres and charging infrastructure across the country.

The exit of Hyundai and Kia may not have an immediate impact on Ola Electric’s operations or growth trajectory, given the company’s strong investor interest and deep capital reserves. However, it does mark the end of a significant chapter in the startup’s journey, one that reflected early confidence from global OEMs in its disruptive potential.

As Ola Electric gears up for its IPO, the company remains under the spotlight for its ability to scale, innovate, and capture market share in an increasingly competitive electric mobility space. For Hyundai and Kia, the exit could mean more autonomy to pursue independent EV strategies in a rapidly growing Indian market that continues to be a battleground for clean mobility leadership.