MG Motor super charges electric vehicle biz, weighs funding options

MG outlined an investment of Rs2000 crore for FY22 and FY23 and is currently weighing various options to raise more funds as it seeks to charge up the EV business.

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MG Motor | Electric Vehicles

MG Motor India envisages a fourth of its total sales coming from electric vehicles (EVs) by the end of FY23 as the company gears up to launch a mass market EV priced at Rs 10-15 lakh.

In terms of percentage contribution to total sales, this will be the highest for any manufacturer in India, claims Rajeev Chaba, president and managing director, MG Motor India.

“Continuing the EV story we are launching another EV in the Rs10-15 lakh range in the first quarter of next year. The two put together, we should be able to sell 30,000 EVs next year, which would make us the number one manufacturer in terms of percentage of sales,” Chaba told Business Standard.

Presently, Tata Motors is the largest EV maker among the passenger vehicle makers. In February, battery operated cars and SUV accounted for 7 per cent of its sales. The Tata Group flagship has a stated objective of EVs contributing 25 per cent in its total sales in the medium to long term.

MG outlined an investment of Rs2000 crore for FY22 and FY23 and is currently weighing various options to raise more funds as it seeks to charge up the EV business.

Owned by SAIC Motor, the company may try to sell a stake of between 10 percent and 30 per cent and is looking at options including issuing new shares or diluting SAIC’s holding, Reuters reported last week citing sources familiar with the plans. It may even create a separate unit for its electric vehicle (EV) business in India. It’s also talking to private equity funds which are increasingly interested in investing in the fast-growing EV market, it said.

“All options are open,” said Chaba alluding to the fundraising plans. He declined to comment further.

On Monday, MG launched the face-lift, improved version of the ZS EV. Claiming to be powered with the largest in-segment 50.3 kWh battery offering a 461 km certified range in a single charge. To be available in two variants, it’s priced at Rs 21,99,800 and Rs 25,88,000, respectively.

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