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Automotive design company invades China or will promote independent design
Mr. Hu, a returnee who has already emigrated, concluded his tenure at a major multinational internal combustion engine company in Shanghai and now serves as the Chinese director of a leading Austrian automotive engineering firm. Last year, he hired one assistant, and two more followed soon after. Under his leadership, engineers began exploring opportunities in China's booming automotive sector.
Despite its global presence, MagnaSteyr’s operations in China remain modest compared to the massive scale of its parent company, Magna Group, which is the third-largest auto parts supplier in the world. While the subsidiary contributes nearly a third of the group’s total business volume, it remains relatively unknown compared to the iconic models it helped design, such as the BMW X3 and Chrysler 300C.
At its largest facility in Austria, MagnaSteyr assembles six different vehicle models for three OEMs, including the Mercedes-Benz G-Class, Jeep Cherokee, and BMW X3. The plant can produce around 200,000 vehicles annually.
Similar international design firms have also entered the Chinese market, with companies like Lotus, Giugiaro, I.DE.A, Pininfarina, and Bertone competing in the same space. Local design companies are also gaining traction, signaling a shift in the industry.
MagnaSteyr’s client list in China includes most joint-venture automakers, as well as domestic brands like Chery, Great Wall, and Hafei. Some have even signed long-term cooperation agreements.
Chinese car designs have traditionally been seen as conservative and outdated. With the help of these independent design experts, could China finally catch a “new wave†in global automotive design?
In Pudong, Mr. Hu’s office in Zhangjiang is bright and spacious, but he rarely gets to enjoy the coffee machine due to his constant travel. He meets with officials from state-owned enterprises, private entrepreneurs, and even potential clients. Adapting to regional dialects and clearly presenting himself is part of his daily routine.
Initially, the company was treated as just another appliance seller. “We weren’t even given the chance to introduce ourselves,†said an employee. But over time, things changed.
In recent years, companies like Chery and Great Wall have renewed their partnerships with MagnaSteyr, capitalizing on the rise of domestic automakers. This trend presents huge opportunities for foreign design firms.
At the recent 3DEC global event in Shanghai, leading design software provider Alias showcased strong growth in sales, with many automotive design companies expressing confidence in the Chinese market. “They’re rushing in, and we’re selling jeans,†joked Yan Tianyi, president of Alias Systems Greater China.
Luo Dongfei, a senior designer at Idea Industrial Design (Shanghai), often attends industry meetings and tries to build relationships with car company researchers. Having access to key decision-makers is crucial.
I.DE.A’s Shanghai Technology Center, one of three global hubs, has become a major player in China, with 40% of its global revenue coming from the region. It has developed several successful models for Changan Automobile.
Pininfarina, too, has a significant presence in China, with 30% of its business there. It recently signed a design agreement with Changfeng Motor for its own-brand SUV.
Giugiaro, represented by Qin Ming in Shanghai, has worked with Brilliance Jinbei, FAW, and other major automakers, producing popular models like the Brilliance Zhonghua and Chevrolet.
With global leaders showing interest in China’s automotive future, MagnaSteyr is focusing on both joint ventures and independent brands. Peter Harbig, vice chairman of MagnaSteyr Global, emphasized that they value self-owned brands and help customers develop not only models but also their own R&D teams.
He believes that integrating European expertise with Chinese resources can help Chinese brands succeed globally. Their strategy involves participating in major auto shows to increase visibility, rather than relying solely on traditional advertising.
Mr. Hu’s approach involves visiting clients, understanding their needs, and then sending the data back to Austria for development. They also involve local engineers and test conditions in the global system, while helping train customer staff.
Compared to technology transfer through joint ventures, outsourcing design and development offers a key advantage: ownership of intellectual property. This gives autonomous brands full control over their models.
Industry reports suggest that developing a new car in China costs significantly less than in Europe or North America—often just one-third or even less. A design firm revealed that the cost in China is approximately $2.5 million to $4 million, compared to hundreds of millions in the West.
“We don’t aim for the lowest cost, but to use China’s competitive resources while combining the best of European expertise to deliver maximum value,†says Peter Harbig.
Ultimately, independent design companies are playing a crucial role in supporting China’s self-owned brands. They are breaking the myth that foreign giants must control every step of the development process. Technology transfer may be outdated, but innovation and collaboration are here to stay.