Magna International, the Canadian auto parts giant, is increasing its investment in Yuma Energy, a Bengaluru-based firm that operates a battery-swapping network for electric two- and three-wheelers in India. Magna is injecting an additional $35 million into Yuma, raising its stake beyond the 51% ownership it acquired when the joint venture was formed, thereby diluting Yulu’s 49% stake. Yuma, which spun out of Indian mobility startup Yulu in early 2023, has completed over 60 million swaps and currently deploys approximately 100,000 batteries across its network.
Magna’s latest investment is predicated on India’s burgeoning gig economy, where delivery riders using electric vehicles (EVs) could benefit from the rapid battery-swapping model. Yuma’s managing director, Muthu Subramanian, estimates that only 10% to 15% of vehicles used by gig workers in India are electric, suggesting significant potential for growth. Subramanian argues that battery swapping, which can be completed in under two minutes, is more practical than fast charging for high-mileage riders, as it minimizes downtime and requires less space and power compared to charging stations. Despite not yet being profitable, Yuma aims to achieve EBITDA break-even within the next two quarters and plans to double its fleet of batteries over the next 12 to 18 months, using Magna’s investment to expand its infrastructure and accommodate new fleets. Source