MG Motor supercharges EV sector and assesses financing options

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MG Motor India is eyeing a quarter of its total sales to come from electric vehicles (EVs) by the end of FY23 as the company prepares to launch a consumer EV priced at Rs 10-15 lakh .

In terms of percentage contribution to total sales, it will be the highest of any manufacturer in India, says Rajeev Chaba, Chairman and Managing Director of MG Motor India.



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

Currently, Tata Motors is the largest maker of electric vehicles among passenger vehicle manufacturers. In February, battery-powered cars and SUVs accounted for 7% of its sales. The Tata Group’s flagship product has a stated target for electric vehicles to contribute 25% of its total sales in the medium to long term.

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

Owned by SAIC Motor, the company could try to sell a stake of between 10% and 30% and is considering options such as issuing new shares or diluting SAIC’s stake, Reuters reported last week citing sources. close to the plans. It could even create a separate unit for its electric vehicle (EV) business in India. It is also aimed at private equity funds that are increasingly interested in investing in the rapidly growing market for electric vehicles, he said.

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

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

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