Austria-based contract manufacturer Magna Steyr has confirmed ongoing discussions with several Chinese OEMs regarding the possibility of local electric vehicle (EV) production in Europe. The move comes amidst concerns over potential tariffs that Europe may impose on Chinese imports, prompting automakers to explore local manufacturing options.
Magna Steyr, a subsidiary of Magna International, is renowned for its automotive manufacturing capabilities, having produced vehicles for Mercedes-Benz, Jaguar, and Fisker, among others. With the suspension of Fisker Ocean SUV production, Magna is seeking to utilize its production capacity and is considering partnerships with Chinese EV manufacturers.
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According to Roland Prettner, President of Magna Steyr, “Nearly all Chinese automakers selling EVs in Europe have been in touch regarding EV production and the need to localize.” Prettner highlighted the strong interest among foreign automakers in leveraging Magna’s manufacturing expertise for their European operations.
While Prettner did not disclose specific automakers, companies like NIO, XPeng, BYD, and ZEEKR, which already sell Chinese EVs in Europe, are likely candidates for potential partnerships with Magna Steyr. Discussions are ongoing as both parties explore the feasibility of localized production for the European market.
Capacity constraints are not a concern for Magna Steyr, which produced over 112,000 complete vehicles with paint in 2022. However, the looming threat of tariffs on Chinese EVs by Europe adds urgency to the discussions, underscoring the importance of localized production to circumvent potential trade barriers.
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The European Union (EU) has been considering tariffs on Chinese EVs since 2023, citing concerns over unfair subsidies to foreign automakers. In response, China has threatened retaliatory tariffs on European automakers, escalating tensions between the two markets.
While the US has already implemented a 100% tariff on Chinese EVs, Europe’s stance remains uncertain. Local production could help alleviate trade tensions and facilitate continued growth of the Chinese EV market in Europe.
As discussions progress, Magna Steyr remains poised to play a pivotal role in supporting Chinese automakers’ expansion into the European market, potentially reshaping the landscape of EV production and trade between the two regions.
