Ola Electric in Big Problem, Hyundai, Kia Sell Stake in Company after Heavy Loss in Q1

One of the large companies in the electric two-wheeler market is increasing difficulties for Ola Electric. The company’s loss in the first quarter of the current year has declined drastically after its share price increased to about Rs 870 crore. Ola Electric has also been shocked by South Korea’s automobile companies Hyundai Motor and Kia. With financial difficulties, Hyundai and KIA have sold around 13.6 crore shares in this company, facing regulatory scrutiny.

Bloomberg news one Report According to data related to bulk deals on the National Stock Exchange (NSE) website, Hyandai has sold around 10.88 crore shares in Ola Electric and KIA has sold around 2.71 crore shares. However, Citigroup Global Markets Mauritius has bought about 8.61 crore shares of the company. Hyandui and KIA had invested about $ 300 million in Ola Electric six years ago. By the end of March this year, Hyandai had about 2.47 percent stake in the company.

In August last year, there was a bumper listing on the stock market of Ola Electric. However, a few months later, the company’s shares started declining. This year, Ola Electric’s share price decreased by 42 percent. The company is facing challenges such as a decrease in sales, increasing regulatory pressure and tough competition from other electric two-wheeler companies. The company has said that it is considering taking a loan of about Rs 1,700 crore to repay the current date. Electric two-wheelers have a major stake in sales, but in the last few months companies like Bajaj Auto and TVS Motor have dent its market share. Sales of electric scooters with Affordable Price of Bajaj Auto and TVS Motor have increased rapidly.

Revenue from Ola Electric operations in the first quarter declined by 61.8 percent to about Rs 611 crore. The total expenditure of the company is about 31.6 percent to more than Rs 130 crore. Market analysts have reported that the average revenue on the sale of the company per unit has decreased. This is the major reasons behind this offering discounts and more sales of electric scooters with low price.