Major auto parts maker open to assembling Chinese vehicles in Canada

Major global automotive supplier Magna International is open to putting together Chinese vehicles in Canada, if plans are long term, the CEO said Tuesday.

Asked about whether Canada-headquartered Magna would consider assembling Chinese vehicles in its home country, CEO Swamy Kotagiri told The Detroit News that the supplier is open to partnering with any automaker on assembly if plans are "really long term."

"We will be open, obviously, to any OEM, where they're looking at a value proposition that makes sense," Kotagiri said. "But it has to be a really long term, and we will not do that on a one-program, one-customer basis."

Magna is hoping to grow with Chinese automakers as the tech-heavy powerhouse expands in Latin America, Australia, Europe and more, Kotagiri said.

"They know us now," Kotagiri said. "We produce for them in China, so we know their systems. We've been working with them, so we believe that's going to be an edge for us to continue doing that elsewhere, wherever they decide."

Magna's current China footprint is about $5.5 billion, Kotagiri said during an Automotive Press Association and Society of Automotive Analysts event Tuesday at Magna's Troy location. The supplier has been in China for nearly two decades.

"We are building in China for Chinese audiences, and they're winning it competitively, and the business in China is better than the average Magna audience," Kotagiri said. "Again, the point I'm trying to make is we are doing business locally in China. We are part of the ecosystem. When they go global, we believe we can help and be at the table as a national partner, like we are with all OEMs."

The longstanding relationship likely helped the company in September 2025 win a contract building two models for Chinese electric vehicle maker XPENG in Magna's Graz, Austria hub. Kotagiri said company leaders see assembly of Chinese cars in Europe for the European market "as a possible further opportunity for other parts of Magna."

Relations between Canadian companies such as Magna and Chinese automakers have been growing as U.S. automakers pull investments from Canada to onshore and save money on President Donald Trump's tariffs.

A recent trade deal between Canada and China replaced a 100% surtax on vehicles imported from China with an import quota. The deal left the United States as the only major automotive market without Chinese brand vehicles for sale for personal use.

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This story was originally published June 9, 2026 at 8:35 PM.