Canadian auto parts giant Magna International is doubling down on its investment in India’s electric vehicle sector, placing a significant bet on battery swapping for two- and three-wheelers. Magna is investing an additional $35 million in Bengaluru-based Yuma Energy, increasing its stake in the company.
Yuma Energy, which spun out of mobility startup Yulu in early 2023, operates a battery-swapping network and has completed over 60 million swaps to date with around 100,000 batteries in operation. Magna’s previous investment in 2022 totaled $77 million, with $52 million going to the Yuma joint venture and $25 million to Yulu.
This latest investment aims to tap into India’s growing gig economy, where delivery riders often lose time and revenue charging electric vehicles. Yuma managing director Muthu Subramanian estimates that only 10% to 15% of gig worker vehicles are currently electric, presenting a large opportunity for growth. Subramanian highlighted that for high-mileage riders, EVs offer cost savings, and the quick swapping process under two minutes is more practical than charging, which can take 20 to 30 minutes.
The battery-swapping business is capital-intensive, requiring infrastructure to be ready ahead of demand. Yuma is not yet profitable, though some older stations are EBITDA-positive. The company reported about 1 billion (approximately $10.5 million) in revenue for the financial year ending March 2026 and is targeting EBITDA break-even within the next two quarters. Yuma plans to use the new capital to expand its swapping infrastructure and double its battery fleet over the next 12 to 18 months.
While Yulu has historically accounted for most of Yuma’s swaps, non-Yulu customers are growing, making up 15% to 20% of swaps in the last quarter. Yuma serves over five fleets and has integrated its batteries with more than 10 vehicle platforms. It expects non-Yulu customers to represent about 25% of swaps within two years. Yuma operates in 18 Indian cities and plans to expand into Chennai and Pune, as well as add more stations in existing cities.
Magna’s investment increases its stake in Yuma, diluting Yulu’s original 49% share, though the new ownership split was not disclosed. Yuma designs and manufactures its own battery packs in Chennai and charging units in Bengaluru, controlling both the hardware and network management.
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