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    How Magna’s New 800‑Volt eDrive Deal in China Will Impact Magna International (TSX:MG) Investors

    Simply Wall St·07/29/2026 01:28:20
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    • Magna International Inc. recently announced it had secured an 800‑volt, 250 kW 2‑speed eDrive program with Chery Automobile Co. Ltd., to be produced at Magna’s new Wuhu facility in China as part of its localized electrification push.
    • This award, alongside the DHD Duo hybrid drive system now in series production with Chery’s Jetour G700, underscores Magna’s expanding role as a supplier across the full spectrum of electric and hybrid propulsion for Chinese OEMs.
    • We’ll now examine how this new 800‑volt eDrive win in China may influence Magna International’s existing investment narrative and outlook.

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    Magna International Investment Narrative Recap

    To own Magna International, you need to believe it can convert its global scale and electrification know how into improving margins despite cyclical auto demand and cost pressures. The new 800 volt eDrive win with Chery supports the near term catalyst of gaining higher value EV content in China, but it does not remove key risks around weaker vehicle production, EV mix pressure and foreign exchange headwinds, which still anchor the story.

    Among recent announcements, the DHD Duo hybrid drive entering series production with Chery’s Jetour G700 is most relevant, as it shows Magna already industrializing complex high voltage systems with the same customer. Together with the 800 volt eDrive award, it ties directly into the catalyst of securing more electrified powertrain programs while Magna is also returning cash through dividends of US$0.495 per share and ongoing buybacks.

    Yet behind the new China eDrive win, investors should be aware of the risk that...

    Read the full narrative on Magna International (it's free!)

    Magna International's narrative projects $44.4 billion revenue and $1.9 billion earnings by 2029.

    Uncover how Magna International's forecasts yield a CA$90.28 fair value, a 7% downside to its current price.

    Exploring Other Perspectives

    TSX:MG 1-Year Stock Price Chart
    TSX:MG 1-Year Stock Price Chart

    Some of the lowest ranked analysts were far more cautious, assuming roughly flat revenue near US$41.9 billion and earnings of about US$1.9 billion by 2029, compared with the baseline view that recent electrification wins could support healthier growth. If you lean toward that pessimistic camp, the latest Chery eDrive award might challenge your assumptions or reinforce concerns about China exposure, which is why it is worth weighing several viewpoints before deciding how Magna fits in your portfolio.

    Explore 4 other fair value estimates on Magna International - why the stock might be worth 7% less than the current price!

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.