Citi Buys In, Hyundai & Kia Exit | What’s Going Wrong At Ola Electric?

Ola Electric finds itself in turbulent waters yet again as key promoters Hyundai Motor Co. and Kia Corp. have divested over 3% stake in the company via a bulk deal on the National Stock Exchange. Interestingly, Citigroup Global Markets Mauritius stepped in to acquire nearly 2% at ₹50.55 per share. Gaurang Shah, Senior Vice President at Geojit Financial Services, expresses deep concerns regarding the company's performance. He highlights the mounting losses—estimated at ₹1,500 crore during the IPO period—which have since escalated. Shah also points to growing consumer dissatisfaction, a spate of complaints with consumer courts, and regulatory run-ins over misleading statements. With intense competition from established players like Bajaj Auto, TVS Motors, and Hero MotoCorp, Ola Electric continues to struggle in the increasingly crowded EV market.