Magna plans to form two new joint ventures with Beijing Electric Vehicle Co. Ltd (BJEV), a subsidiary of the BAIC Group for electric cars, for complete vehicle manufacturing as well as engineering of electric vehicles.
The companies recently signed the term sheets for the new joint ventures. The engineering and manufacturing joint ventures are expected to take over an existing BAIC manufacturing facility in Zhenjiang, Jiangsu Province, where the first production vehicles are planned for 2020. The plant has the capacity to build up to 180,000 vehicles per year. The joint ventures will also be set up to offer engineering and complete vehicle manufacturing capacity to other potential customers.
In April 2018, BAIC Group and Magna announced they will jointly develop a next generation smart electric vehicle architecture for the Chinese market. It is expected that this vehicle architecture will be transferred to the engineering joint venture and will form the platform of the new electric vehicles to be launched in the joint venture.
Both joint ventures are subject to a number of conditions including agreement on final joint venture agreements and obtaining all necessary regulatory approvals
Global automotive players are heading towards China as it is currently the world’s leading market for electric mobility and by 2020, the number of all-electric cars on China’s roads is forecasted to reach around five million.