"So far this year we are growing. This year we will probably do 40 percent more than last year," says Luca Biagini. 

Biagini says solid growth in China has been due to Magneti Marelli's wide customer base and its target market of low and medium end cars.

"We have a portfolio of around 20 car makers in China. Half are joint ventures and half are pure Chinese," he says.

Pure Chinese automakers benefited the most from this year's cut in purchase tax, which targeted small cars. "Medium, low cars was our target, so we are lucky," says Biagini.

Magneti Marelli's biggest customer in China is Chery Automobile Co., followed by Shanghai Automotive Industry Corp., FAW, Tianjin FAW, Dongfeng, JAC, Hafei, Brilliance and Zotye.

So far this year, the Italian parts supplier has entered a new partnership and expanded its plant in Wuhu of Anhui province.

In January 2009 Magneti Marelli and Shanghai Automobile Gear Works (SAGW), formed a joint venture to produce hydraulic kits for Automated Manual Tranmission systems (AMTs). SAGW is a subsidiary of Shanghai Automotive Industry Corp.

With a total investment of $10 million (68 million yuan), the 10,000 square meter Shanghai Magneti Marelli Powertrain Co. in Jiading, will begin production in 2010 with annual capacity to produce around 400,000 AMT kits. 

"This is a product the market likes very much because Chinese people don't like absolute manual transmissions," Biagini says, referrign to the AMTs. "Imported automatic transmissions are very expensive and there are no local producers of automatic transmissions."

The system can be used together with existing manual transmissions to give the driver the choice of an automated transmission system. Manual transmissions are manufactured by local Chinese companies across China.

Currently, Magneti Marelli makes transmission control units (TCUs) at its electronics plant in Guangzhou and AMT kits are made at a plant in Shanghai. This year, the company has supplied around 50,000 AMT units to customers in China. Their production will move to Jiading once the new facility goes into operation.

Magneti Marelli has also expanded production capacity in Wuhu where Chery Automobile Co. is located.

A new powertrain and lighting facility began production in Wuhu this year. The 28,000 square meter plant has an annual production capacity of 4 million lighting units and 4.5 million powertrain systems. It replaces a previous 8,000 square meter plant in Wuhu.

The plant in Wuhu supplies automotive lighting systems to Suzuki in Japan and Samsung Renault in Korea.

In product development, Magneti Marelli is working with Italian tire maker Pirelli Tyre Co. and brake systems maker Brembo S.p.A on integrating a Cyber Tire which will reduce CO2 emissions in line with European regulations for 2012.

The Cyber Tyre, an intelligent tire developed by Pirelli in collaboration with Shandong University, will be integrated with Magneti Marelli electronic control systems and with Brembo's braking systems.

The company also plans to launch a new navigation system in China soon, says Biagini. "Together with a local partner we are developing a set of services to assist during driving."

"The system is practically ready, production (in China) will begin end of next year," he says. He declined to name the local partner. 

"We are bringing to China the newest technology," says Biagini, "Not recycling old technology." For example, a new engine management system which will comply with Euro 4 standards will soon be brought to China.

"So far in China we are growing, so in a moment of global downturn it's not bad," he says.