MG Motor Seeks Funding For Electric Car Business

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JAKARTA - An automotive manufacturer from India, MG Motor, is reportedly eyeing a number of funds to finance its business development in the electric vehicle segment. As reported by Reuters from three reliable sources, the company owned by China's SAIC Motor is said to be considering an option to sell around 10 to 30 percent of its shares to new investors.

In addition, other options in the form of issuing new shares are also considered, although this has the potential to dilute SAIC's ownership of GM Motor shares. Not only that, the option of establishing an electric vehicle business unit separately from the parent entity is also another option that is being prepared by management.

Still in the same report, representatives of GM Motor are currently involved in discussions with a number of private equity funds that have the same interest in business development in the electric vehicle segment.

GM Motor believes that this investment offer will be in great demand, considering that many countries are now concerned about the issue of renewable energy and diverting their economic activities from dependence on fossil fuels.

"Everyone buys EV stories because it gives investors a stake in the implementation of ESG (Environmental, Social and Governance), and MG Motor is now trying to present itself as one of the players in the EV business," said the source.

However, MG Motor itself has not issued an official statement regarding the amount of investment funds needed, which is said to still depend heavily on business assessments in India and development plans that are still in the preparation stage.

The plan is that the injection of funds will later be used to increase production, introduce new EVs, and expand the EV charging network in the community.