Magna Boosts India Battery Swapping with $35M Investment in Yuma Energy

Ekhbary News Agency | 2026-05-12T14:30:00Z

Magna International, a major auto parts manufacturer, is significantly increasing its investment in India's battery-swapping market by injecting another $35 million into Yuma Energy. This strategic move underscores Magna's belief in the viability of battery swapping for India's vast fleet of electric two- and three-wheelers, a segment driven by a rapidly expanding delivery economy.

Yuma Energy's Network Expansion

Yuma Energy, a Bengaluru-based company that emerged from the mobility startup Yulu in early 2023, has already facilitated over 60 million battery swaps and deployed approximately 100,000 batteries. The new capital infusion will bolster Magna's existing stake, which was initially 51% when the joint venture was established. Yuma's managing director, Muthu Subramanian, indicated that the investment will primarily fund the expansion of swapping infrastructure and double the battery fleet within the next 12 to 18 months.

Economic Rationale and Future Outlook

The investment is heavily influenced by the needs of India's gig economy, where delivery riders can lose significant time and revenue while charging electric vehicles. Subramanian highlighted that EVs offer a compelling cost of ownership for these high-mileage users, emphasizing the critical importance of vehicle uptime. Yuma's battery swapping solution, which takes under two minutes, offers a practical alternative to lengthy fast charging. Despite being capital-intensive and not yet profitable, Yuma is targeting EBITDA break-even within the next two quarters, with some older stations already achieving profitability. The firm is also diversifying its customer base beyond Yulu, integrating with multiple vehicle platforms and expanding its network across 18 Indian cities, with plans to enter Chennai and Pune soon.