Invest in Yulu and create battery swap business

Magna International Inc.

Magna enters the micromobility market: invest in Yulu and create battery exchange business

Magna and Yulu collaborate to promote sustainable micro-mobility in India

Magna and Yulu collaborate to promote sustainable micro-mobility in India

  • A $ 77 million investment opens the door to the rapidly growing micro-mobility market

  • Battery Replacement Service unlocks a new business model for Magna

  • Opportunities to promote sustainable urban mobility in India

AURORA, Ontario, September 11, 2022 (GLOBE NEWSWIRE) – Mobility technology company Magna is expanding into the fast-growing micromobility market by investing $ 77 million in Yulu, India’s largest provider of electrified shared mobility, and creating a battery replacement service company.

Magna Yulu investment

Magna Yulu investment

Yulu distributes low-speed shareable two-wheeled electric vehicles to facilitate affordable and sustainable urban mobility in India. As part of the deal, Magna will have a stake in the company and hold a seat on 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 the necessary infrastructure.

“This is an incredibly exciting time for Magna to contribute to a sustainable future in urban mobility through this investment in Yulu,” said Matteo Del Sorbo, Executive Vice President, Magna International and Global Lead for Magna New Mobility. “Micromobility represents a great additional growth opportunity for Magna and joining forces with Yulu helps us expand our business in this fast-growing industry.”

Magna offers extensive design, engineering and manufacturing capabilities to this new entity, currently registered as “Yulu Energy”. With its proven track record of operating in high-volume manufacturing globally, Magna will serve as the exclusive battery replacement provider for Yulu’s customers and manage the future build-up of infrastructure required for millions of trades per week.

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

Amit Gupta, co-founder and CEO of Yulu, said: “We can clearly see a significant growth opportunity for Yulu in both the BaaS and MaaS businesses over the next three to four years. As a market leader in electric mobility, with a Proven business model based on a positive unitary economy, our focus now will be to establish a strong and agile supply chain and increase our operations. We will go deeper and deeper into our existing markets and explore new areas while offering a exceptional customer experience. We welcome Magna aboard with our shared vision of creating a sustainable and scalable electric vehicle 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 an electrified two-wheeled mobility platform aligns with its core competencies and Go-Forward strategy to expand into Mobility-as-a-Service (MaaS) and Battery -as-a-Service (BaaS) businesses.

LABELS
Micromobility, two-wheeled electric, electric scooters, Yulu Mobility

CONTACT WITH INVESTORS
Louis Tonelli, Vice President, Investor Relations
louis.tonelli@magna.com, 905.726.7035

CONTACT WITH THE MEDIA
Tracy Fuerst, Vice President, Corporate Communications and PR
tracy.fuerst@magna.com, 248.761.7004

ON MAGNA
Magna is more than one of the world’s largest automotive suppliers. We are a mobility technology company with a global team of 161,000 entrepreneurially minded employees and an organizational structure designed to innovate like a startup. With over 65 years of experience and a systemic approach to design, engineering and manufacturing that touches nearly every aspect of the vehicle, we are positioned to support the advancement of mobility in a changing industry. Our global network includes 341 manufacturing operations and 89 product development, engineering and sales centers in 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 THE APPLICABLE SECURITIES LAW AND ARE SUBJECT TO AND EXPRESSLY QUALIFIED BY, THE EXCLUSIONS OF LIABILITY PROVIDED FOR BY THE REGULATORY DEPOSITS. PLEASE REFER TO THE DISCUSSION AND ANALYSIS OF THE OPERATIONAL AND FINANCIAL RESULTS OF THE MOST CURRENT MANAGEMENT OF MAGNA, TO THE ANNUAL INFORMATION FORM AND TO THE ANNUAL REPORT ON FORM 40-F, AS REPLACED OR UPDATED BY ANY OF THE SUBSEQUENT DOCUMENTS WHICH INDICATE THE SECURITY WARNINGS, INCLUDING THE RISK FACTORS THAT COULD CAUSE REAL EVENTS, ARE SUBSTANTIALLY DIFFERENT FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS. THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON THE MAGNA WEBSITE AT THE ADDRESS WWW.MAGNA.COM.

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

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