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A Chinese electric vehicle manufacturer and a Canadian auto parts producer have announced a partnership, with their subsidiary planning to manufacture two fully electric models at its plant in Graz, Austria.
The factory will initially produce the G6 and G9 models from this Chinese brand, with production slated to begin within the current quarter. This facility is already responsible for assembling vehicles for several global brands, including the Mercedes-Benz G-Class, BMW Z4, and Toyota GR Supra.
The company started its international expansion in 2021 by exporting vehicles to Norway, but this marks its first domestic production on the continent. Over time, the Graz plant will manufacture additional models, such as fully electric sedans, mid-sized SUVs, and vehicles based on the company’s proprietary Kunpeng electric platform.
This partnership will also help the manufacturer reduce the impact of steep European Union tariffs on imported Chinese electric vehicles. Since the company plans to export only vehicle parts to the Graz plant, rather than fully assembled cars, it will be subject to lower import taxes.
The company stated, “Localized production in Europe will boost our competitiveness and provide a strong foundation to increase our market share.”
Its vice chairman and president added, “Our partnership with Magna aligns perfectly with our vision and strategy to expand our European presence,” emphasizing the company’s ongoing commitment to the region.
Additionally, the automaker recently opened its first research and development center in Europe, located in Munich, Germany, on September 10. With operations in more than 46 countries and regions, it sold 18,701 vehicles abroad from January to July, representing a 217% increase over the same period last year.
A representative from Magna mentioned, “We are excited to partner with this Chinese electric vehicle manufacturer, marking our first collaboration with a Chinese OEM in Europe. Using our advanced facilities and expertise, we are well-positioned to support their ambitious goals in the European market.”
It has also been reported that Magna has secured a contract with another Chinese automaker, Guangzhou Automobile Group, though details have not yet been officially disclosed.
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