Canadian auto supply giant Magna International is investing US$77 million in India's electric-vehicle startup Yulu to enter the micromobility market.
Magna will own a stake and hold a seat on the board of the company based in Bangalore, India, the supplier said. The two companies have established a new battery swapping entity.
Yulu operates around 10,000 low-speed electric two-wheelers in Bangalore, Delhi, and Mumbai. It is targeting an additional 15 cities in the next 18 months.
Micromobility, which facilitates transportation over short distances through light-weight vehicles such as electric scooters and bikes, has flourished globally, supported by government incentives for the use of environmentally friendly transportation.
“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,” Matteo Del Sorbo, executive vice-president of Magna International and global lead for Magna new mobility, said in a statement.
Earlier this year, India's finance minister said that the country will introduce a new policy for battery swapping to boost sales of electric vehicles.
