Magna’s Expanding Footprint in China; Two New Facilities for Active Grille Shutters and Composite Liftgates
Recently, Magna, the leading active grille shutter (AGS) and composite Liftgate producer, opened two more manufacturing facilities in China. A new plant in Changsha (JV with GAC group) which started production of composite liftgates in late 2018 and now (30th April 2019) the opening of AGS facility in Shanghai. The moves corroborate that Manga has stayed true to its China commitment.
Magna Exteriors president Grahame Burrow explained that the opening of the facilities is a response to the pressing need for emission reductions and fuel efficiency improvements, which are in part achieved by incorporation of composite liftgates and AGS.
Stratview Research, in its extensively detailed report on the Global Active Grille Shutter Market, expounds the various drivers that have catapulted AGS and composite liftgate into a higher growth orbit. The report also elucidates the reason why China is such lucrative a market. China has many feathers in its crown; it is the world’s largest automotive market, world’s largest and fastest growing electric vehicle market, it has a very high concentration of luxury cars and is the leading market for AGS. These factors coupled with the stringent government emission norms have made China the hotcake for the AGS and composite liftgate market.
Stratview Research analysts estimate that on account of various favourable factors, AGS market shall grow at a double-digit rate, over a period of 2018-2023. The market is expected to cross USD 1 billion by 2023.
Stratview Research, in a separate report on the Composite Liftgate market, estimates the market to grow at a CAGR of double-digits during 2018-2023. The report findings are in agreement with Magna’s assertion that the demand for lightweight, fully recyclable composite liftgates is strong, and is driven by the growth of crossover, sport utility vehicles and demand for greater fuel efficiency.
In concurrence with the Stratview Research reports, Magna has enumerated the merits of composite material as a major factor driving its growth. The liftgate modules achieve up to 25 percent mass savings over steel versions, leading to better fuel economy and lower emissions. Magna claims that composites allow for greater design flexibility with deeper draws and tighter radii, reduced complexity of the total liftgate module, lower tooling investment and operating efficiency improvements.
With a robust manufacturing base in China, Magna seems to be favourably poised to capture a large share of one of the world’s most important automotive market. Magna is also confident that its wide portfolio of active aerodynamic components such as active underbodies, active wheel deflectors and active rear diffusers, shall give it a strong standing.
Stay tuned to the latest news and reports on automotive, composites and other industries by following us on Linkedin, Twitter and Facebook.
News Source: Magna
Market Estimates: Reports on AGS & Composite Liftgate