Canada’s Magna expects to double EV parts, powertrain sales this year

By Nathan Gomes

(Reuters) -Canada’s Magna International (NYSE:) said on Thursday it expects to “roughly” double sales at its unit that manufactures electric powertrains and parts for electric vehicles this year, as automakers rush to roll out more affordable greener models.

Demand for parts and sensors has picked up as vehicle makers strive to push out more electrified vehicles with advanced driver aid systems such as driving monitoring systems, park assist and adaptive cruise control.

“We expect to roughly double our managed electrification sales this year, and almost double again between 2023 and 2025,” Magna CEO Seetarama Kotagiri said at the company’s investors day conference.

Magna also said it was intensifying its efforts to use automation and other smart manufacturing activities to help reduce costs from inflationary headwinds.

Earlier in the day, the Canadian auto-parts supplier had raised its sales forecast for fiscal 2025 on sustained demand for parts, sensors and electrified powertrain systems.

It expects full-year 2025 total sales to be between $46.7 billion and $49.2 billion, compared with its prior forecast of between $44.7 billion and $47.2 billion.

Magna, which announced its joint venture with LG Electronics in 2021, also said it expects the venture to become profitable this year.

U.S.-listed shares of Magna were down about 2.5% amid declines in the broader market.

In its most recent quarter, the company beat analysts’ estimates, but flagged supply-chain related headwinds.

Possible strikes by the United Auto Workers (UAW) at the Detroit Three carmakers — General Motors (NYSE:), Ford Motor (NYSE:) and Stellantis (NYSE:) — amid ongoing contract negotiations will likely pressure some auto part suppliers.

Magna had in August said it was prepared to consider laying off staff in the short term to combat disruptions in case of strikes by the UAW at the Detroit Three.