Canadian automotive giant Magna International is significantly expanding its manufacturing footprint in China to capitalize on the country's rapidly growing electric vehicle market. The company has announced a new production facility in Wuhu that will manufacture advanced electric drive systems.
Strategic Expansion in Key Chinese Market
The new operation will be located in the Jiujiang Economic Development Zone in Wuhu and represents a strategic move to strengthen Magna's position in the world's largest electric vehicle market. The facility will initially produce electric drive systems for Chinese automaker Chery, with capacity designed to serve additional automotive manufacturers in the future.
Diba Ilunga, President of Magna Powertrain, emphasized the importance of this expansion, stating that it reflects the company's commitment to supporting customer electrification strategies and advancing sustainable mobility. "Wuhu offers a strong industrial foundation and an environment conducive to innovation," Ilunga noted.
Manufacturing Capabilities and Job Creation
The newly leased facility spans over 160,000 square feet and will manufacture Magna's eDrive systems, which deliver smooth, high-performance electric propulsion with scalable architecture suitable for a wide range of battery electric vehicles. This expansion is expected to create approximately 200 new jobs once the facility reaches full production capacity.
Magna's electric drive technologies enable automakers to meet strict emissions standards while delivering efficient, high-performance electrified vehicles across diverse market segments. These systems also enhance overall driving dynamics for electric vehicles.
Two Decades of Growth in China
This expansion continues Magna's two-decade growth trajectory in China. The company has established itself as a significant player in the Chinese automotive market, recording $5.6 billion in sales in the country during 2024. Approximately 60% of this revenue came from Chinese original equipment manufacturers, highlighting the company's successful integration into the local automotive ecosystem.
As China's automotive industry accelerates toward electrification, localized production of electric technologies has become increasingly critical. Magna's new operation in Wuhu positions the company to meet this growing demand while reinforcing its role as a global leader in powertrain innovation.
Magna, headquartered in Aurora, Ontario, is one of the world's largest automotive suppliers with operations spanning 28 countries. The company brings nearly seven decades of manufacturing expertise to its innovative vehicle systems, delivering performance, safety, and quality to automakers worldwide.
