Canadian auto parts supplier Magna International Inc announced its intention to form two new joint ventures with Beijing Electric Vehicle Co. Ltd (BJEV) for complete vehicle manufacturing as well as engineering of electric vehicles. BJEV is a subsidiary of the BAIC Group for electric cars, and Magna is a global automotive supplier and brand-independent vehicle contract manufacturer.

The engineering and manufacturing joint ventures are expected to take over an existing BAIC manufacturing facility in Zhenjiang, Jiangsu Province, where the first production vehicles are planned for 2020. The plant has the capacity to build up to 180,000 vehicles per year, according to a statement by Magna.

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“From a strategic point of view, the establishment of the JVs will benefit both Magna and BAIC to further strengthen our business growth in China,” said Mr. Xu Heyi, Chairman of BAIC Group.

“Based on an open and sharing platform, we will jointly develop and manufacture premium smart electric vehicles, bringing the clean energy vehicle industry to the next level,” he added.