Auto Supplier Magna To Manufacture BMW 5 Series Plug-In Hybrids
car&bike Team
1 min read
Jun 20, 2017, 12:42 AM
Key Highlights
- Magna plans to produce Jaguar's I-PACE SUV beginning in early 2018
- Its Austrian plant can produce about 200,000 cars per year
- Magna is currently building a new paint shop in Slovenia
Canadian auto supplier Magna International Inc will produce BMW's new 5-series plug-in hybrid at its Austrian factory, the company said on Monday, part of a strategy to produce electric cars on a contract basis for global automakers.
The BMW 530 plug-in hybrid will be manufactured beginning this summer at Magna's plant in Graz, Austria, where it already plans to produce Jaguar's I-PACE SUV beginning in early 2018. Global automakers and their suppliers are investing heavily in fully-electric and gasoline-electric hybrid vehicles. Consumer demand is still low versus that for gasoline engine vehicles, but companies are beginning to offer more choices to respond to government mandates for greater sales of vehicles that emit little or no carbon dioxide, and prepare for a future experts believe will be dominated by electric vehicles.
Rival tier-one auto supplier Continental AG, for example, said in April it was increasing spending by 300 million euros ($334.68 million) on new products such as charging systems and battery management components related to electric vehicles. Magna, North America's largest automotive supplier and the third globally, is alone among the top auto suppliers to perform contract manufacturing for carmakers. Its Austrian plant can produce about 200,000 cars per year. Magna is currently building a new paint shop in Slovenia due to increased demand.
A Magna spokeswoman would not comment on a statement by the Slovenian government in March that the auto supplier would potentially invest up to 1.24 billion euros in the country, including a car plant with capacity of 100,000 to 200,000 vehicles per year.
Having contract manufacturing in its portfolio creates a niche for the company as automakers slowly bring more electrified vehicles to market over the next decade. For automakers, outsourcing the assembly can be an advantage on low-volume models to minimize capital expenditures and avoid tying up their own production lines.
Swamy Kotagiri, Magna's chief technology officer, said he sees contract manufacturing of electric vehicles as a "near-term opportunity" for the company, given that by 2025, 40 to 50 percent of all vehicles produced will include some electrification elements.
"We are setting up knowing the penetration will be higher." Magna has also produced non-electric cars at its Austrian facility, including BMW's Mini Countryman and Mercedes-Benz' luxury G-Wagen SUV.
Last month, Magna raised its full-year sales forecast on higher demand.
The BMW 530 plug-in hybrid will be manufactured beginning this summer at Magna's plant in Graz, Austria, where it already plans to produce Jaguar's I-PACE SUV beginning in early 2018. Global automakers and their suppliers are investing heavily in fully-electric and gasoline-electric hybrid vehicles. Consumer demand is still low versus that for gasoline engine vehicles, but companies are beginning to offer more choices to respond to government mandates for greater sales of vehicles that emit little or no carbon dioxide, and prepare for a future experts believe will be dominated by electric vehicles.
Rival tier-one auto supplier Continental AG, for example, said in April it was increasing spending by 300 million euros ($334.68 million) on new products such as charging systems and battery management components related to electric vehicles. Magna, North America's largest automotive supplier and the third globally, is alone among the top auto suppliers to perform contract manufacturing for carmakers. Its Austrian plant can produce about 200,000 cars per year. Magna is currently building a new paint shop in Slovenia due to increased demand.
A Magna spokeswoman would not comment on a statement by the Slovenian government in March that the auto supplier would potentially invest up to 1.24 billion euros in the country, including a car plant with capacity of 100,000 to 200,000 vehicles per year.
Having contract manufacturing in its portfolio creates a niche for the company as automakers slowly bring more electrified vehicles to market over the next decade. For automakers, outsourcing the assembly can be an advantage on low-volume models to minimize capital expenditures and avoid tying up their own production lines.
Swamy Kotagiri, Magna's chief technology officer, said he sees contract manufacturing of electric vehicles as a "near-term opportunity" for the company, given that by 2025, 40 to 50 percent of all vehicles produced will include some electrification elements.
"We are setting up knowing the penetration will be higher." Magna has also produced non-electric cars at its Austrian facility, including BMW's Mini Countryman and Mercedes-Benz' luxury G-Wagen SUV.
Last month, Magna raised its full-year sales forecast on higher demand.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Related News
2 mins read
Manual-Only BMW M3 CS Revealed
Research More on BMW 5 Series
6.8/10
*Ex-Showroom Price
₹ 75.8 Lakh
Popular BMW Models
Latest Cars
Upcoming Cars
Latest News
car&bike Team | Jul 25, 2026River Indie Electric Scooter Crosses 50,000 Units Production MilestoneThe milestone comes less than three years after the first unit rolled out of the company's Hoskote manufacturing facility.2 mins read
car&bike Team | Jul 25, 20262026 Maruti Brezza Facelift Fuel Efficiency Figures RevealedThe updated model returns up to 26.90 km/kg in CNG guise, while the newly introduced turbo-petrol delivers a claimed 20.47 kmpl.2 mins read
Jafar Rizvi | Jul 25, 2026Honda ZR-V Hybrid SUV Launched In India At Rs 47.99 LakhThe ZR-V is Honda’s first hybrid SUV for India and arrives as a CBU.1 min read
Jafar Rizvi | Jul 24, 20262026 Maruti Brezza Facelift: Variants, Features, Engine Options ExplainedThe 2026 Maruti Suzuki Brezza is offered in four trim levels: LXi, VXi, ZXi and ZXi+ and with two engine options.5 mins read
Jafar Rizvi | Jul 24, 20262026 Maruti Brezza Facelift Launches With Three Major FirstsThe 2026 Maruti Suzuki Brezza has arrived, and along with carrying a five-star Bharat NCAP rating, the model brings three firsts for both the Brezza and, in one case, Maruti itself.2 mins read
Jaiveer Mehra | Jul 24, 20262026 Maruti Suzuki Brezza Facelift Launched; Price Starts At Rs 7.40 LakhUpdated Brezza arrives with a new turbo-petrol engine option and a new 6-speed manual gearbox aside from new features.2 mins read
Bilal Firfiray | Jul 24, 2026Honda ZR-V Review: Who Is It For?Honda has brought the new ZR-V to India as their current flagship offering. It’s a CBU, it’s a hybrid, and it’s here for a limited few. Who is it for though?1 min read
Shams Raza Naqvi | Jul 15, 2026Ferrari 849 Testarossa Spider Driven: Rs. 11.25 Crore Meets 1,000 bhpWe got behind the wheel of the most powerful convertible from Ferrari. What makes the 849 Testarossa Spider Special? We tell you.1 min read
Bilal Firfiray | Jul 12, 2026Tata Sierra EV Review: Reborn In The Electric AgeThe Tata Sierra EV isn’t drastically different from its ICE counterpart when it comes to design. But being the seventh electric offering from the Indian brand, it has gotten a few things right, and very few things wrong. But is it a compelling package to buy?5 mins read
Jafar Rizvi | Jul 13, 2026TVS Orbiter Long-Term Review (Report 1): Settling In Takes TimeFirst impressions weren't the strongest, but the Orbiter has made a mark in its first month in the car&bike garage.5 mins read
Seshan Vijayraghvan | Jul 7, 2026Tata Altroz Petrol DCA Long-Term Review: Intercity & Highway Driving ReportWe tested the Tata Altroz Petro DCA’s highway manners, intercity performance, and real-world fuel efficiency.1 min read