The maker of the Hector and Astor SUVs is seeking to tap the local market because of a delay in getting government approval for new investment from the Chinese parent.
MG Motor India has already initiated talks with private equity investors, several people in the know told ET.
The company is exploring setting up an EV subsidiary to bring in new investors. MG Motor may later go for a local public listing to provide an exit route to private equity investors or the parent may buy back their stake, said one of the people.
An email sent to MG Motor India seeking comment did not elicit any response till press time Friday.
Managing director Rajiv Chaba had told ET last year that the company was considering investing about ₹2,000 crore to expand capacity and bring in new products. It plans to launch a range of EVs, from a small hatchback with a starting price under ₹10 lakh, to a compact SUV and high-end D-segment SUV. The compact EVs may be based on the GS or Global Small EV platform jointly developed by SAIC-GM, which may cater to emerging markets, including India and Indonesia. The C- and D-segment EVs may come from the Sigma platform. The EV hatchback, with a range of 200 km on a full charge, will be the first off the mark and will hit the roads in the first quarter of 2023.
Gaurav Vangaal, associate director at S&P Global Mobility, said given the abundant capital available from green funds worldwide, it was prudent to raise money through private equity. “Frugal Chinese technology has serious potential in the Indian market. Given that SAIC EVs are well proven in the Chinese market, showcasing capability and attracting interest from PE investors may not be a challenge. Given the delays so far, how quickly the company will be able to operationalise its plans will be critical for success,” added Vangaal.
