CCI approves Hyundai’s $300 million investment for Ola electric vehicles

October 31, 2019: The Competition Commission of India (CCI) approved the $300 million investment of the South Korean automobile giant Hyundai and its subsidiary Kia Motors in Ola Electric and its parent ANI technologies on Wednesday. The approval allows the companies to collaborate in the making of electric vehicles and the subsequent infrastructure specifically for Indian customers.

@CCI_India approves acquisition of shares in ANI Technologies & OLA Electric by Hyundai Motor and Kia Motors subject to compliance of modifications

— CCI (@CCI_India) October 30, 2019

While Ola plans to get ready with a million electric vehicles in India by 2021, the investment marks the entry of big companies into the use of electric vehicles in cab-hailing services, which concerned the CCI. The access of giants into the segment could be unfair for other players and competition. The approval comes as a major relief for the companies as the original deal was struck in March and the first CCI application was rejected and the second one was submitted in September.

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The application clearly defines the business that the investment will be focusing as the market for manufacture and sale of passenger cars, the market for operational leasing services, the market for radio taxi services and the market for charging infrastructure services for EVs in India.

Earlier the reports suggested that the technology giant Microsoft will be investing $200 million in the cab-hailing major.