Magna International has opened a 160,000‑square‑foot electric‑drive‑system plant in the Jiujiang Economic Development Zone of Wuhu, China. The facility will assemble the company’s eDrive powertrains, which combine electric motors, power electronics, and battery‑management systems into a single, high‑performance module for battery‑electric vehicles.
The plant’s location is strategically chosen to support Chery’s electrification roadmap and to serve other regional OEMs. By producing eDrive systems locally, Magna reduces lead times, cuts logistics costs, and gains greater pricing flexibility. The company expects the new site to create about 200 jobs once full production is reached, underscoring its commitment to local employment and supply‑chain resilience in a market that accounted for $5.6 billion of Magna’s 2024 sales and 60 % of revenue from Chinese OEMs.
Magna’s recent earnings reinforce the significance of this expansion. In Q3 2025, the company reported $10.5 billion in revenue—up 2 % from the prior year—and adjusted EPS of $1.33, a $0.05 beat over consensus. The growth was driven by stronger demand for powertrain components and disciplined cost management, allowing margins to expand by 10 basis points. Management’s guidance for 2025—sales of $38.6 billion to $40.2 billion and an adjusted EBIT margin of 5.3 % to 5.8 %—signals confidence in continued demand for electrified powertrains.
President of Magna Powertrain, Diba Ilunga, said the Wuhu facility “brings world‑class electric drive technology closer to Chery and other partners in China, reinforcing our role as a global leader in powertrain innovation.” CEO Swamy Kotagiri added that the investment reflects Magna’s strategy to deepen its footprint in key growth markets and to deliver sustainable mobility solutions.
China’s EV market remains the largest and fastest‑growing globally, and Magna’s partnership with Chery dates back to a 2011 joint venture that produced exterior and interior components. The new eDrive plant positions Magna to capture a larger share of the Chinese EV supply chain, compete with domestic players, and offer OEMs a single, integrated powertrain solution. The expansion also aligns with Magna’s broader strategy of localizing production in high‑growth regions, as seen in its 2017 joint venture with Huayu Automotive Systems in China.
Overall, the Wuhu facility strengthens Magna’s ability to meet rising demand for electric‑drive technologies, supports its long‑term growth targets, and enhances supply‑chain resilience in a critical market. The investment is expected to generate incremental revenue and margin upside as the plant ramps up production and serves additional OEMs beyond Chery.
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