Investing in Yulu and creating a battery replacement business, The Canadian Business Journal

• $77M investment opens door to fast-growing micromobility market
• Battery replacement service unlocks new business model for Magna
• Opportunities to promote sustainable urban mobility in India

AURORA, ON, Sept. 11, 2022 (GLOBE NEWSWIRE) — Mobility technology company Magna has invested $77 million in Yulu, India’s largest electric shared mobility provider, to create a battery replacement services company. , is tapping into the rapidly growing micromobility market.

Yulu deploys shareable low-speed electric two-wheelers to promote accessible and sustainable urban mobility in India. As part of the deal, Magna will own an equity stake in the company and join Yulu’s board of directors. In addition, the two companies have established a new battery exchange entity to support the rapid growth of electrification of mobility and necessary infrastructure.

Matteo del Sorbo, executive vice president of Magna International and global head of Magna New Mobility, said: “Micromobility is a great opportunity for further growth for Magna, and joining forces with Yul will enable us to expand our business into this rapidly growing sector.”

Magna will bring extensive design, engineering and manufacturing capabilities to this new entity, now registered as “Yulu Energy”. With a proven track record of high-volume production worldwide, Magna will act as the exclusive battery replacement provider for Yul’s customers, helping build the future infrastructure needed for millions of weekly replacements. manage.

This new BaaS (Battery-as-a-Service) entity leverages Yulu’s strong market position and network in India, as well as its software expertise. The company currently operates and operates approximately 10,000 electric two-wheelers in Bangalore, Delhi and Mumbai. Yulu is targeting 15 more cities in the next 18 months, and may expand beyond India in the future.

Yulu co-founder and CEO Amit Gupta said: As a market leader in electric mobility with a proven business model built on positive unit economics, our current focus is on establishing a robust and agile supply chain to expand our operations. . We will make our existing markets deeper and more dense, and open up new areas while providing a superior customer experience. We welcome Magna to our shared vision of building a sustainable and scalable EV ecosystem in India and beyond. ”

Yulu Energy has approximately 200 employees and is headquartered in Bangalore, India.

Magna’s entry into one of the fastest growing markets for electrified two-wheeled mobility platforms is its Mobility as a Service (MaaS) and Battery as a Service (BaaS) businesses.

tag
Micromobility, electric motorcycles, electric scooters, Yulu Mobility

investor contact
Luis Tonelli, Vice President, Investor Relations
[email protected]905.726.7035

media contact
Tracy Fuerst, Vice President of Corporate Communications and PR
[email protected]248.761.7004

About Magna
Magna is more than one of the world’s largest suppliers to the automotive sector. We are a mobility technology company with a global, entrepreneurial team of 161,000 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 mobility advancements in a changing industry. Our global network includes 341 manufacturing operations and 89 product development, engineering and sales centers across 28 countries.

For more information on Magna [(NYSE:MGA; TSX:MG)]Visit www.magna.com or follow us on Twitter @MagnaInt.

This release may contain statements that constitute “forward-looking statements” under applicable securities laws and are subject to the cautionary disclaimers contained in Magna’s regulatory filings. , and is explicitly qualified. See Magna’s most recent management discussion and analysis of its results of operations and financial condition, Annual Information Form and Annual Report on Form 40-F. Risk factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These documents can be found on his website at Magna at: WWW.MAGNA.COM.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/66397e89-af56-4539-9685-6511af667fef.

CBJ Newsmaker