Global automotive supplier Magna has formed a joint venture with Huayu Automotive Systems, a subsidiary of SAIC Motor.

The JV’s first product will be an electric-drive powertrain for a German automaker, destined for the Chinese market. Both partners aim to develop localized core competencies in R&D, manufacturing and key parts.

Magna is no newcomer to electrification. For nearly 10 years, it has been supporting customers in the US and Europe with products for electric and plug-in hybrid vehicles, including motors, gearboxes, inverters and control software.

“The new-energy vehicle market will continue to grow at a rapid speed in China,” said Mr. Chen Zhixin, President of SAIC Motor. “With this trend, SAIC Motor is developing the New Four Modernization strategy, focusing on car electrification, connectivity, intelligence, and sharing economy.”

“China is the number-one growth market in the world, and they have been clear about their intended leadership in bringing hybrid and electric vehicles to market,” said Magna CEO Don Walker.

Source: Magna