Magna forms JV with BAIC subsidiary to build two new electric cars in China
Earlier this week, Canada-based car manufacturer Magna International announced that it is forming a joint venture with BAIC subsidiary Beijing Electric Vehicle Company for producing two new premium electric cars in China.
The joint venture (JV) which Magna is forming with Beijing Electric Vehicle Company will likely take over BAIC’s manufacturing facility located in Zhenjiang city in China’s Jiangsu Province. The facility has the capability to produce a maximum of 180,000 vehicles per year.
The production of the first units of the two new premium electric cars will likely be commenced by the JV in 2020. For the engineering and production work related to the two electric cars, the JV will apparently rely on third parties, as per an Electrive report.
The two new premium electric cars which Magna and the BAIC subsidiary will engineer and build for the Chinese market will probably be based on a new electric vehicle platform, on which a collaboration between Magna and BAIC commenced in April 2018.
Asserting that Magna and the BAIC subsidiary will “jointly develop and manufacture premium smart electric vehicles” which will be based on an open and sharing platform, BAIC Group Chairman Xu Heyi said: “From a strategic point of view, the establishment of the JVs will benefit both Magna and BAIC to further strengthen our business growth in China.”
South America is still lagging behind in adoption of electric vehicles. Chinese companies are already approaching public transport authorities across the world to offer their electric and hybrid urban mobility solutions.
Chinese EV manufacturer BYD has recently announced that it is opening a new battery factory in the Qinghai province in western China.
At the 2018 Quail Motorcycle Gathering in Carmel, California this week, Curtiss Motorcycles unveiled its powerful new dual motor Zeus electric motorcycle concept to the public for the first time.
Japanese automaker Honda has recently made its new electric car -- the 2018 Honda Clarity Electric -- available for purchase at its dealerships in California and Oregon.
According to a Bloomberg New Energy Finance (BNEF) prediction, 19% of all passenger vehicles sold in China will be electric vehicles (EVs) by the year 2025.
On Wednesday, German automaker Audi announced at its annual meeting that it plans to build 20 new electrified cars by the year 2025. The automaker also added that most of the planned electrified cars will be battery-powered vehicles.