MG Motor, which is owned by China’s SAIC Motor, is planning on raising funds to push for its future plans related to electric vehicles in India. Interestingly, The company is aiming on pushing its electric mobility business in the region amid frictions between China and India, with Chinese investments facing rising scrutiny.
According to a Reuters report, three sources close to the matter have stated that MG Motor India is expected to sell around 10 to 30 percent stake and is even looking at other options as well. This includes issuing new shares or diluting SAIC’s holding, as per one of the sources. Furthermore, the carmaker could even be seeking to spin off a separate unit for its electric vehicle business in India.
The report also adds that the company is in talks with private equity funds that are showing interest in investing into the EV push. This isn’t surprising considering that the electric vehicle segment is seeing explosive growth in the automobile industry. It is also the next alternative since nations are shifting their economies away from fossil fuels. One source stated that “Everyone is buying into the EV story because it gives investors an ESG bet, and MG is trying to pitch itself as an EV play.”
At the moment, there is still no final plans on raising funds for MG Motor’s EV push, as it is subject to change based on the valuation of the Indian business and its growth plans. The funds acquired will be used to ramp up production and introduce new EV model to expand its business. Unfortunately, the company has declined to comment on this matter.
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