Following the headlines of tariff threats and investigations on Chinese electric vehicles, Magna Steyr is currently discussing with several Chinese automakers in regards to the potential localization of EV production in Europe.

As a subsidiary of Magna International, Magna Steyr’s position in this pivotal decision-making process could reshape the landscape of EV manufacturing in the European market. Notably, the announcement came from Magna Steyr’s President Roland Prettner who shed light on the ongoing discussions at a media event held at Magna Steyr’s Graz plant stating, “Over the past 12 months, we have seen very strong activity from all of the Chinese OEMs who are contacting us and who want and need to localize.”

Despite potential capacity constraints, Magna Steyr remains confident in its ability to accommodate the production demands of Chinese automakers. Yet, looming tariff threats for Chinese EVs may challenge the envisioned partnership. Prettner acknowledged the potential impact of tariffs on Chinese EVs in Europe stating, “Nevertheless, possible EU tariffs could change ‘the rules of the game in Europe,’ impacting how the Chinese automakers will compete in the region.” 

As the European Commission investigates allegations of anti-competitive subsidies benefiting Chinese automakers, its President Ursula von der Leyen has warned of potential tariffs on Chinese EVs if unfair subsidies are uncovered. In response, Chinese automakers have been accelerating their plans to establish local manufacturing plants in Europe from BYD announcing plans for a factory in Hungary and Chery forming a joint venture in Spain. 

While there are still uncertainties and discussions conducted between Magna Steyr and several Chinese automakers, the company’s exploration of bringing in opportunities for them will certainly evolve the European market with Chinese EVs evolving it. As Chinese EVs are being scrutinized under the spotlight, the future of electric mobility will be decided upon the upcoming months. 

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