Canadian auto parts provider Magna International stated on Monday it would set up two joint ventures with Beijing Electric Vehicle for constructing electric cars in China.
The ventures are anticipated to take over a present manufacturing plant in Zhenjiang, Jiangsu, belonging to the BAIC Group, the parent of Beijing Electric Vehicle.
Magna and Beijing Electric stated they will also construct cars for other customers at the plant.
The first vehicles are scheduled for 2020 and the companies stated the Zhenjiang plant will have the ability to build up to 180,000 vehicles per year.
Magna’s announcement comes as China attempts to engineer a dramatic move away from conventional gasoline cars with subsidies and stringent production quotas for electric and plug-in electric hybrid vehicles.
BAIC and Magna in April had declared that they would jointly make electric vehicles for the China.
