China's Xusheng wins $1.1 billion auto part orders from North American automaker

BEIJING, Jan 5 (Reuters) - China's Ningbo Xusheng Group 603305.SS said on Monday it has received car component orders from a North American automaker, with expected sales revenue of about 7.8 billion yuan ($1.12 billion).

The contract covers auto parts supplies for the unnamed automaker in China and Mexico over eight years starting in 2026, Xusheng said in a filing to the Shanghai Stock Exchange.

The company said the orders reflect the automaker’s confidence in its capabilities but cautioned that factors such as global economic conditions and the health of the auto market could affect production plans and procurement.

Zhejiang-based Xusheng, which makes aluminium parts in cars, energy storage systems and humanoid robots including battery cases, has supplied Tesla TSLA.O for more than a decade.

In December, the company disclosed that founder Xu Xudong had been in talks to sell a controlling stake to investors backed by the Guangzhou government.

Xusheng's announcement comes amid rising trade tensions between China and the United States, with some automakers, including Tesla and General Motors, reportedly seeking to reduce dependency on Chinese suppliers.

Tesla's top China executive said in November the company values Chinese suppliers and does not exclude them by origin, following a Wall Street Journal report that Tesla asked U.S. suppliers to remove China-made parts for American-built cars.

($1 = 6.9806 Chinese yuan renminbi)