Ineos selects Magna to build small electric 4×4 from 2026

Ineos Automotive will substantially grow its line-up to four vehicles by the end of the decade, beginning with a new, smaller electric off-roader in 2026 which could potentially beat the electric Land Rover Defender to market. 

The follow-up to the larger, combustion-powered Ineos Grenadier will be built in Graz, Austria, by manufacturing giant Magna Steyr – which already produces the Jaguar I-Pace, Jaguar E-Pace, BMW Z4 and – most recently – the Fisker Ocean. 

Magna will also handle all engineering development work for the electric off-roader, it has confirmed, having been heavily involved in the conception of the Ineos Grenadier. Notably, Ineos Automotive’s chief operating officer is Hans Pessler, who previously served as a project manager at the Austrian firm, which is perhaps best known for building the Mercedes-Benz G-Class, a project in which Pessler played a leading role.

The latest G-Class is selling in record numbers and contributing to historic revenues of around £42,000 per vehicle sold for Mercedes-Benz, up around 25% on pre-pandemic levels. Future Ineos models beyond the Austria-built EV are expected to be built at its factory in Hambach, France, although the firm hasn’t ruled out opening new operations around the globe. 

Commenting on the latest evolution in the partnership between the two firms, Ineos Automotive CEO Lynn Calder said: “Having worked together on the engineering of our crucial first product, we’ve seen first-hand the value of applying Magna’s agility, expertise and experience to a complete vehicle development program.

“Deepening our collaboration is a natural next step as we use the Grenadier as a springboard for our continued growth as a global automotive brand with our second model line. We’ll once again work with the very best partners to launch another world-class product to our customers in 2026.”

Ineos’s ambitious expansion plans underline company owner Sir Jim Ratcliffe’s determination to establish his automotive division as a brand rather than the maker of a single, niche off-roader, as well as building its credentials in the electric and luxury car markets. As such, the cars are expected to be sold under the Ineos brand name, with the Grenadier designation reserved for that model. Rumours had suggested the smaller car would be sold as the Grenadier Sport, but this is no longer believed to be the case. 

Speaking to Autocar, Ratcliffe revealed he has spent around £1.3 billion launching the Ineos Automotive division to date, suggesting a bill in excess of £4bn to launch the four-model line-up, even with the distribution and marketing channels established. 

Read more: Exclusive: Britain’s richest man details plans for Ineos Automotive

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