Ola Electric, a major player in the electric two-wheeler market, is facing increasing challenges.
The company’s share price has dropped sharply after reporting a massive loss of around ₹870 crore in the first quarter of this year.
Hyundai and Kia Sell Major Stake
Adding to Ola’s difficulties, South Korean automakers Hyundai Motor and Kia have sold a significant number of shares in the company, which is also under regulatory scrutiny.
According to data on the National Stock Exchange (NSE) and a Bloomberg report, Hyundai sold about 10.88 crore shares, while Kia sold around 2.71 crore shares.
Meanwhile, Citigroup Global Markets Mauritius purchased approximately 8.61 crore shares.
Background on Hyundai and Kia’s Investment
Hyundai and Kia had invested nearly $300 million in Ola Electric six years ago. As of March this year, Hyundai’s stake in the company stood at about 2.47%.
Decline in Share Price and Market Challenges
Ola Electric had a strong market debut in August last year, but the share price began to fall within months.
In 2025 alone, the share price dropped by 42%. The company is facing reduced sales, higher regulatory pressure, and tough competition from other electric two-wheeler manufacturers.
Plans to Manage Debt
To handle financial challenges, Ola Electric is considering taking a loan of about ₹1,700 crore to repay existing debt.
Competition from Bajaj Auto and TVS Motor
Ola Electric once led the electric two-wheeler market but has recently lost ground to companies like Bajaj Auto and TVS Motor.
These competitors have seen rapid growth in sales of their affordable electric scooters, cutting into Ola’s market share.
Financial Performance in Q1
In the first quarter, Ola Electric’s revenue from operations fell by 61.8% to about ₹611 crore.
Its total expenses dropped by 31.6% to just over ₹130 crore. Analysts note that the average revenue per unit sold has decreased due to discounts and increased sales of lower-priced scooters.
