Canadian auto provide big Magna Worldwide is investing US$77 million in India’s electric-vehicle startup Yulu to enter the micromobility market.

Magna will personal a stake and maintain a seat on the board of the corporate based mostly in Bangalore, India, the provider stated. The 2 corporations have established a brand new battery swapping entity.

Yulu operates round 10,000 low-speed electrical two-wheelers in Bangalore, Delhi, and Mumbai. It’s concentrating on an extra 15 cities within the subsequent 18 months.

Micromobility, which facilitates transportation over brief distances by lightweight automobiles resembling electrical scooters and bikes, has flourished globally, supported by authorities incentives for the usage of environmentally pleasant transportation.

“Micromobility presents an amazing alternative for added development for Magna, and becoming a member of forces with Yulu helps us increase our enterprise into this quickly rising sector,” Matteo Del Sorbo, govt vice-president of Magna Worldwide and world lead for Magna new mobility, stated in an announcement.

Earlier this 12 months, India’s finance minister stated that the nation will introduce a brand new coverage for battery swapping to spice up gross sales of electrical automobiles.