Reuters reports that MG Motor India, which is owned by China’s SAIC Motor, plans to raise funds to develop its Indian electric mobility business.
MG Motor India may try to sell a stake of between 10% and 30% and is looking at options including issuing new shares or diluting SAIC’s holding, Reuters reports.
The report also added that MG Motor may even create a separate unit for its electric vehicle (EV) business in India.
The company is talking to private equity funds which are increasingly interested in investing in the fast-growing electric vehicle market.
MG Motor India has yet to finalise how much money it plans to raise, which will depend on the valuation of the Indian business and its growth plans.
MG Motor plans to use the funds to ramp up production, introduce new EVs and expand its charging network.
Despite government subsidies, sales of electric cars in India make up less than 1% of the total mainly due to the high cost of EVs and insufficient charging infrastructure.
India’s EV market is dominated by domestic carmaker Tata Motors which raised $1 billion from TPG last year for its EV business.
Meanwhile, Tesla Inc wants New Delhi to reduce import tariffs on EVs, which are as high as 100%, so it can bring in cars for sale at an affordable level.
