Magna enters the micromobility market: invests in Yulu and creates a battery exchange company
$77M Investment Opens Door to Growing Micromobility Market
Battery Swap Service Opens New Business Model for Magna
Opportunity to Advance Sustainable Urban Mobility in India
AURORA, Ontario, Sept. 11, 2022 (GLOBE NEWSWIRE) — Mobility technology company Magna is expanding into the fast-growing micromobility market by investing $77 million in Yulu, the largest electrified shared mobility provider of India, and establishing a battery exchange service company.
Yulu is deploying low-speed, shareable electric two-wheelers to facilitate accessible and sustainable urban mobility in India. As part of the deal, Magna will own a stake in the company and will have a seat on Yulu’s board of directors. In addition, the two companies created a new battery exchange entity to support the rapid growth of mobility electrification and required infrastructure.
“It’s 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 of Magna International and Global Head of Magna New Mobility. “Micromobility presents a great opportunity for additional growth for Magna, and partnering with Yulu helps us expand our business in this rapidly growing industry.”
Magna brings extensive design, engineering and manufacturing capabilities to this new entity, currently registered as “Yulu Energy”. With a proven track record of high-volume production globally, Magna will serve as the exclusive battery swap supplier for Yulu customers and manage the future construction of the infrastructure required for millions of swaps per week.
This new Battery-as-a-Service (BaaS) entity leverages Yulu’s strong market position and network in India as well as its software expertise. The company currently has around 10,000 electric two-wheelers in service and operating in Bangalore, Delhi and Mumbai. Yulu is targeting 15 more cities over the next 18 months, with potential to expand beyond India in the future.
Amit Gupta, co-founder and CEO of Yulu, said, “We can clearly see a significant growth opportunity for Yulu in the BaaS and MaaS businesses over the next three to four years. As a market leader in electric mobility, with a proven business model based on a positive unit economy, our focus now will be on establishing a robust and agile supply chain and growing our operations. We will deepen and densify our existing markets and explore new areas while delivering an excellent customer experience. We welcome Magna on board with our shared vision to create a sustainable and scalable electric vehicle ecosystem in India and beyond.
Yulu Energy has around 200 employees and is headquartered in Bangalore, India.
Magna’s entry into one of the fastest growing markets for an electrified two-wheeled mobility platform aligns with its core competencies and Go-Forward strategy to grow in mobility as a as a service (MaaS) and battery as a service (BaaS) companies.
Micromobility, electric two-wheelers, electric scooters, Yulu Mobility
Louis Tonelli, Vice President, Investor Relations
Tracy Fuerst, Vice President, Corporate Communications and Public Relations
Magna is more than one of the world’s largest automotive suppliers. We are a mobility technology company with a global team of 161,000 entrepreneurial-minded employees and an organizational structure designed to innovate like a startup. With over 65 years of expertise and a systems approach to design, engineering and manufacturing that touches nearly every aspect of the vehicle, we are well positioned to support the advancement of mobility in an industry in full swing. transformation. Our global network includes 341 manufacturing operations and 89 product development, engineering and sales centers in 28 countries.
For more information on Magna [(NYSE:MGA; TSX:MG)]visit www.magna.com or follow us on Twitter @MagnaInt.
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