Magna & BAIC subsidiary to manufacture electric cars in China
Date: 2018-06-20   Author: Saipriya Iyer  Category: #industry

Magna & BAIC subsidiary to manufacture electric cars in China

Magna International Inc., an automotive supplier based in Canada, is planning to develop electric vehicles in China in collaboration with Beijing Electric Vehicle Company Limited, a division of BAIC Group. Reportedly, both the firms are likely to acquire the current BAIC unit in Zhenjiang bearing a capacity of manufacturing approximately 1,80,000 cars each year.

Sources cite that the strategic move is touted to be a huge one for Magna, with the new electric cars set to be launched in 2020. With an employee base of 22,000 at 51 factories in Ontario, Magna has assembled vehicles in Graz, Austria, for the last two decades at the Steyr plant.

Don Walker, the CEO of Magna, has raised concerns over the escalating costs of carrying out business operations in provinces such as Ontario in Canada. However, he also seems to have been quite confident of the company’s ability to manufacture cars with traditional, hybrid, and electric Powertrains. He further claimed that the firm is likely to tap the opportunity across the rapidly emerging electric vehicle market of China.

The Chinese government offers subsidies for electric car production in the country. However, billions of dollars are wasted on improving battery technologies and charging infrastructure for creating an electric vehicle production facility in Canada. These may have perhaps led to the current association between Magna and BAIC Group’s subsidiary.

The Chinese administration has set a target of achieving 20% of automotive sales revenue via new energy cars such as plug-in hybrid cars or electric vehicles by 2025. Last year, new energy vehicle sales across the globe rose to over 5,20,000 and China was in forefront in terms of sales in line with Norway and California.

Analysts project that the number of complete electric cars that will be witnessed on roads in China will hit 5 million by 2020. They are also of the view that Magna’s joint venture with Beijing Electric Vehicle Co. Ltd will provide the Canadian firm an easy access to the China electric vehicle market and Chinese consumers.



About Author


Saipriya Iyer

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

More from Saipriya


Post Recommendents

Foam Tray Market Size Outlook 2025: Top Companies, Trends, Growth Factors Details by Regions, Types and Applications
Author: Partha Ray

This is a professional and in-depth study on the current state of the Foam Tray Market. Report initially provides a basic overview of the industry that covers definition, applications and manufacturing technology, post which the report explores in...


On-board Wireless Sensor Market Size, Growth, Analysis, Outlook by 2020 - Trends, Opportunities and Forecast to 2025
Author: Partha Ray

Global On-board Wireless Sensor Market 2019 Includes Market Size, Share, Trends, Growth, Demand, Supply, Application, Segmentation, Opportunity, Market Development, Production, Capacity Utilization, Supply, Analysis and Forecast by 2024

.


Waste Incinerators Market Size, Latest Trend, Growth by Size, Application and Forecast 2025
Author: Partha Ray

Market Study Report LLC adds a new report on Waste Incinerators Market Share for 2019-2024. This report provides a succinct analysis of the market size, revenue forecast, and the regional landscape of this industry. The report also highlights the ...