Magna increases bet on battery swapping in India with $35M for Yuma

Magna's increased investment in Yuma Energy reflects a specific bet on India's gig economy and the unique economics of battery swapping for two- and three-wheelers. While battery swapping has struggled globally, the high daily runtime of Indian gig workers makes uptime critical, favoring quick swaps over charging. Yuma's managing director, Muthu Subramanian, estimates only 10% to 15% of gig vehicles in India are electric today, indicating significant room for growth if more riders transition from gasoline. The firm aims to use the $35 million to double its 100,000-battery fleet and expand its 400-station infrastructure over the next 12 to 18 months. The capital-intensive nature of building out this infrastructure means Yuma is not yet profitable, though some older stations are EBITDA-positive. The company targets EBITDA break-even within two quarters, having generated about $10.5 million in revenue in the financial year ending March 2026. A key challenge will be diversifying beyond Yulu, which still accounts for the majority of swaps, though non-Yulu customers are projected to reach 25% of swaps within two years. This expansion is crucial for Yuma to scale and achieve the unit economics necessary for sustained profitability in India's dynamic EV market.