MG Motor India plans fund-raising for EV push, plans to install 1,000 chargers
MG Motor India plans to raise funds for pushing electric mobility. With this strategy, MG Motor India aims to increase its penetration and market share in the Indian electric vehicle market, states a Reuters report. The report also claims that this move comes as Chinese investments in India have been facing increased scrutiny by the government.
To raise funds for EV push, MG Motor India might sell a stake of between 10-30 per cent and is also looking at options including issuing new shares or diluting SAIC's holding. However, the British automaker is yet to finalize the amount of money it wants to raise for the EV push. MG might even create a completely separate unit for its electric vehicle business in India, claimed the report.
MG is currently selling its electric car ZS EV in India, which competes with rivals such as Hyundai Kona EV, Tata Nexon EV among others. With the increased focus on electric vehicles and rising sales in this segment along with rising concern around fossil-fuel vehicles, several automakers are focusing on the EV segment. MG doesn't want to stay behind in the race.
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Besides the ZS EV, MG currently sells products like Gloster, Hector etc in India, which are powered by fossil fuel. The carmaker sold around 3,500 cars a month on an average in India in 2021. It was able to grab a market share of around one per cent in India last year.
As Reuters cited one of its sources, 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. The automaker plans to use the funds to ramp up the production of EVs, introduce new products in the segment and expand its charging network.
Meanwhile, MG Motor India on Thursday has announced the launch of a new venture MG Charge. It aims to develop EV charging infrastructure. The MG Charge plans to install 1,000 EV chargers in residential areas across India in 1,000 days.