South Korean automobile maker Hyundai and its affiliate Kia Motor’s $300 million investment in Ola might have hit a roadblock due to the cab-hailing service’s trouble with Competition Commission of India (CCI).
The strategic partnership was announced in March, 2019, under which the three companies are planning to collaborate to build India-specific electric vehicles (EV) and infrastructure.
When the application was sent to CCI for approval, the government body asked ANI Technologies, Ola’s parent company, to define “competitive landscape” for electric vehicles and their use in ride-hailing services, as it didn’t want to create a favourable atmosphere for one automobile company. But Ola failed to submit its report on time and its application for the clearance has now become invalid.
The deal struck in March has still not been approved. According to a report in MoneyControl, CCI’s biggest concern is the impact of automobile companies’ investment on the competitive landscape of EVs and their use in cab services.
ANI Technologies has reportedly sent another application this month, with a clearer picture of the competitive market, which includes market for manufacture and sale of passenger cars in India, the market for operational leasing services, the market for radio taxi services, and the market for charging infrastructure services for EVs.