Not All Mobility Solutions work in All Markets
Matteo Del Sorbo, Executive Vice President Magna New Mobility, Magna International joined Grayson Brulte on The Road to Autonomy podcast to discuss why not all mobility solutions work in all markets and why Magna is investing in India.
The conversation begins with Matteo discussing how Magna approaches autonomy.
Our approach at Magna here is to develop robust and reliable features that fulfill the needs of the market, our customers, the regulations, all the while we still have a careful eye on the future and mega trends that impact mobility and in the end, autonomous driving.
– Matteo Del Sorbo
This approach allows Magna keep their pulse on the future of mobility as the company continues to operate a profitable revenue generating organization. It’s a wise strategy that allows Magna to engage in an autonomous vehicle market that is now consolidating around a handful of winners who are well financed and poised for long-term growth.
We are going to play a very important role in autonomy and ADAS.
– Matteo Del Sorbo
It’s not just autonomy and ADAS, Magna is also embracing micromobility and energy while deploying solutions in emerging markets including India. India is a market of 1.4 billion individuals with a GDP that is projected to grow 6.5% this year.
I have always said that not all solutions work in all markets. I think micromobility is a perfect example. Certain solutions work in well in one geographic region, but not in another. You need to really understand the market, the needs, the people that drive the right solutions.
– Matteo Del Sorbo
To understand the mobility market in India is to understand the infrastructure challenges in the urban environments and why micromobility works. Battery swapping is allowing companies to operate electric mobility solutions in India to overcome the constraints of limited electricity reliability and the overall infrastructure challenges in the country.
With a mandate from the Indian Government to convert roughly 200 million two-wheelers from gas to electric, the opportunity for battery swapping is enormous. This is where Magna thrives as the company knows how to scale and engineer world-class products.
Magna is rapidly scaling operations with their customer Yulu Mobility/Yulu Energy, they are also an investor. Currently Yulu Mobility has has 10,000 electric scooters in operation which Magna is helping to scale by the tens of thousands over the next year.
We are going to be adding 10,000 units every month for the next 12 months. By the end of year we will have over 100,000 units.
– Matteo Del Sorbo
While the recipe to scale operations in India is there, Magna is also looking to expand their footprint to other emerging markets where their expertise can provide value and shareholder return.
At the end of the day, you have to solve a problem. Just bringing a bunch of kick scooters to a city because they are cool will not solve problems, it will not give you scale, the market, people demand a scaled quality product.
– Matteo Del Sorbo
To achieve success in these new emerging markets Magna has teams focused on new emerging mobility technologies will be that will impact these markets.
Wrapping up the conversation, Matteo and Grayson discuss the future of delivery.
Recorded on Tuesday, March 7, 2023
