MG Motor India plans to raise funds to develop India’s electric vehicles. MG Motor India itself is currently owned by China’s SAIC Motor.
Reuters reported on Sunday that MG Motor India may be trying to sell a stake between 10 percent and 30 percent and is considering options including issuing new shares or diluting SAIC’s holdings.
He added that they could even create a separate unit for the electric vehicle (EV) business in India.
The company is talking to private equity funds that are increasingly interested in investing in the fast-growing electric vehicle market, two sources said, as countries shift their economies away from fossil fuels.
“Everyone is buying EV stories because it gives investors ESG stakes, and MG is trying to present itself as an EV game,” the first source told Reuters.
MG Motor India has yet to finalize how much money it will raise, which will depend on the assessment of the Indian business and its growth plans, the anonymous source said.
They plan to use the funds to increase production, introduce new EVs, and expand their charging network, the first source said. MG Motor India itself declined to comment on the plan.
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