BAIC Foton and ZF Strategic Partnership Yields New Milestone: First AxTrax 2 Electric Drive Axle Rolls Off the Line

On June 22, the strategic partnership between BAIC Foton and ZF Friedrichshafen AG yielded another significant milestone — the first AxTrax 2 electric drive axle rolled off the production line at the joint venture factory in Jiaxing. This achievement marks a critical step forward for BAIC Foton in securing key influence in the new energy core components sector for commercial vehicles, completing an essential leap from strategic planning to real-world implementation. Zhang Lan, Secretary of the Party Working Committee and Director of the Management Committee of the Jiaxing Economic and Technological Development Zone; Chang Rui, Deputy Secretary of the Party Committee and General Manager of BAIC Group, and Chairman of BAIC Foton; Lu Zhenghua, Secretary of the Party Committee and General Manager of BAIC Foton; Cui Shipeng, Deputy General Manager of BAIC Foton and Chairman of ZF-Foton; Andreas Moser, Member of the Board of Management of ZF Group and Head of the Commercial Vehicle Solutions and Industrial Technology Divisions; and hundreds of guests from government, both shareholder parties, partners, and the media gathered together to witness this milestone moment.

01. Aligning with Industry Transformation — Strategic Layout Bears Fruit

Today, the automotive industry is undergoing once-in-a-century upheaval, with the waves of electrification and intelligence sweeping the globe. During China's 15th Five-Year Plan period, the domestic commercial vehicle market is expected to stabilize at around 3.2 million units, with the penetration rate of new energy vehicles projected to reach 50% by 2030, and L2+ level intelligent driving in commercial vehicles reaching 30%. At the same time, geopolitical competition is reshaping the global energy supply chain, and energy self-sufficiency has been elevated to a core national strategy, compelling the commercial vehicle industry to accelerate its transition from fuel-driven to electric-driven powertrains.

Based on a profound insight into these industry trends, in April 2023, BAIC Foton and ZF signed a strategic agreement to introduce ZF's latest electric drive technology into China for the first time, with production based in Jiaxing. After three years of careful construction and preparation, the AxTrax 2 electric drive axle has officially rolled off the line at the joint venture factory, marking the transformation of this strategic blueprint into reality.

As ZF's integrated electric drive axle platform designed for the next generation of commercial vehicles, AxTrax 2 can be applied to medium and heavy vehicles. Its modular design replaces the engine, transmission, drive shaft, differential, and conventional axles, enabling the electrification of commercial vehicles. The product rolled off the line features a 930V platform silicon carbide inverter, with a continuous output power of 210 kW and a peak torque of 26,000 N·m. Equipped with a 3-speed transmission and electronic shift actuator, its compact design maximizes available battery packaging space while achieving full synchronization with the vehicle's braking, ADAS, and autonomous driving systems — providing an efficient and intelligent system solution for the electrification transformation of commercial vehicles.

02. Jiaxing Base Continues to Empower — Joint Venture Cooperation Reaches a New Level

Since BAIC Foton and ZF established their joint venture company in Jiaxing in 2017, cooperation between the two sides has deepened continuously. To date, the BAIC Foton-ZF transmission joint venture factory has achieved cumulative sales revenue of 20 billion yuan. With its advanced production systems and intelligent equipment, the Jiaxing base is becoming an important manufacturing, R&D, and functional headquarters for ZF in the Asia-Pacific region. The official roll-off of the AxTrax 2 electric drive axle represents a key step in extending the partnership from traditional transmissions into the electric drive domain.

In his address, Lu Zhenghua expressed heartfelt gratitude to the Jiaxing Municipal Party Committee, Municipal Government, the Economic Development Zone, and relevant departments for their long-standing care and support of the BAIC Foton-ZF transmission joint venture factory. He also extended sincere respect to the project team and all employees who worked day and night to overcome challenges. He noted that the roll-off of the new product is only the first step of a long journey, and put forward three expectations for the future development of the joint venture company:

First, sustain technological leadership by fully leveraging ZF's global technology advantages and BAIC Foton's complete vehicle scenario strengths, accelerating the efficient conversion of electric drive axle technology from reserves to commercial delivery.

Second, deepen customer value by focusing on core scenarios such as trunk-line logistics and regional transportation, accelerating the value conversion from "roll-off and delivery" to "customer profitability."

Third, advance localization and cost reduction with efficiency gains, relying on the resilience and scale advantages of the domestic industrial chain to accelerate component localization, so that globally-qualified electric drive axles can benefit customers with a more competitive cost-performance ratio, helping new energy commercial vehicles accelerate the shift from "policy-driven" to "market-driven."

03. Anchored to the "15th Five-Year Plan" — Driving the Green Transformation of Commercial Vehicles

Standing at the critical starting point of the "15th Five-Year Plan," the mass production roll-off of the AxTrax 2 electric drive axle is yet another important achievement of BAIC Foton's three major strategies: "comprehensive internationalization, comprehensive new energy transition, and comprehensive intelligence." Facing industry trends of deep integration between electrification and intelligence, as well as the restructuring of the global landscape, BAIC Foton is using key technologies as its lever to build a vertically integrated synergy advantage across core components such as batteries, electric drives, and electronic controls.

The official launch of AxTrax 2 electric drive axle production not only provides strong technical support for BAIC Foton's new energy commercial vehicles but also sets a benchmark for the localization of electric drive technology in China's commercial vehicle industry. Going forward, the BAIC Foton-ZF transmission joint venture factory will continue to drive a cost revolution through technological innovation, tap into efficiency potential through lean management, and push new energy commercial vehicles toward a new stage of market-driven growth.