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Magna opens new plant in China

4. December 2019

The 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.

Magna China

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.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly hier on Amazon.

 

Author: Julian Busch

Publisher: MPR China Certification GmbH

Tel.: +49 69 271 37 69 150

E-Mail: info@china-certification.com

Web: www.china-certification.com

MPR Author

About the author: Julian Busch is founder and managing director of MPR China Certification GmbH
Publisher: MPR China Certification GmbH

Tel.: +49 69 271 37 69 150

E-Mail: info@china-certification.com
Web: www.china-certification.com