Magna opens new plant in China
4. December 2019The Canadian automotive supplier Magna will produce transmissions, inverters and motors for the Volkswagen Group’s electric vehicles at the production site. Magna, headquartered in Toronto, is the world’s third-largest automotive supplier with sales of 40.83 billion US dollars, according to a ranking in the trade journal Automotive News. The new plant near Shanghai has a size of around 66,000 square meters and is operated by Huayu Automotive, a joint venture founded in 2017. Huayu, for its part, is majority owned by SAIC Motor Corp., which owns the MG brand and its vehicles and also has a stake in Shanghai (SAIC) Volkswagen Automotive.
Magna expects the first components to be delivered in the second half of 2020. The products will be installed in various electrically powered VW and Audi models in Europe and China. These in turn are based on the Group platform MEB, which Volkswagen has developed specifically for its new generation of electric vehicles.
In China, the environment for vehicles with alternative drive systems is developing positively, with the number of units produced rising by around 60 percent to 1.27 million in 2018. Magna is now well positioned on the Chinese market in the segment of electric drives and components. Already in July, the supplier announced its cooperation with the BAIC Group in a joint venture for the production of electric vehicles in Zhenjiang. This is Magna’s first investment in a complete production line for vehicles outside Europe.
The Volkswagen Group has also pushed ahead with the localization of its electric vehicles for its China business. It has decided to introduce 30 new models within the next two years, half of which will be produced in China. Some of the vehicles will also be developed exclusively for the Chinese market and will only be sold there. The first step towards local production was taken by Volkswagen in June at the Tianjin transmission plant with the production of engines and transmissions for plug-in hybrid vehicles and electric cars.
Experts expect further continous growth for the Chinese market of electric vehicles. Take advantage of this and export your products to China. You will need the obligatory China Compulsory Certification (CCC), for which we will be happy to advise you.
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