Magna enters micromobility market, creates battery-swapping business
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The auto parts supplier is investing $77 million in Yulu, an electrified shared mobility provider in India.
Ontario-based auto parts and mobility technology company Magna is expanding into the micromobility market by investing $77 million in Yulu, said to be India’s largest electrified shared mobility provider, and creating a battery-swapping service company.
Yulu deploys shareable, low-speed, electric two-wheelers to facilitate accessible, sustainable urban mobility in India. As part of the agreement, Magna will have a stake in the company and will hold a seat on Yulu’s board of directors. In addition, the two companies have established a new battery swapping entity to support the rapid growth in electrification of mobility and required infrastructure.
“This is an incredibly exciting time for Magna to contribute to a sustainable future in urban mobility through this investment in Yulu,” said Matteo Del Sorbo, executive vice president, Magna International and global lead for Magna New Mobility. “Micromobility presents a great opportunity for additional growth for Magna, and joining forces with Yulu helps us expand our business into this rapidly growing sector.”
In a statement, Magna said it will serve as the exclusive battery-swapping provider for Yulu’s customers and manage the future buildup of the infrastructure required for what the company calls “millions of swaps per week.”
Yulu company currently has approximately 10,000 electric powered two-wheelers in service and operations in Bangalore, Delhi, and Mumbai; and is targeting an additional 15 cities in the next 18 months, with potential to expand beyond India in the future. The company has approximately 200 employees and it is headquartered in Bangalore, India.
In its statement, Magna said its entry “into one of the fastest growing markets for an electrified two-wheel mobility platform” aligns with its core competencies and Go-Forward strategy to expand in Mobility-as-a-Service (MaaS) and Battery-as-a-Service (BaaS) businesses.
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