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

On June 22, the strategic partnership between BAIC Foton and ZF yielded another milestone — the first AxTrax 2 electric drive axle from the two companies' joint venture plant officially rolled off the production line in Jiaxing. The event marks BAIC Foton's acquisition of a critical voice in the core components segment of new energy commercial vehicles, completing a key leap from strategic positioning to tangible delivery. Zhang Lan, Secretary of the Party Working Committee and Director of the Management Committee of 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 Management Board of ZF Group and Head of Commercial Vehicle Solutions and Industrial Technology; and hundreds of guests from government, shareholders, partners, and the media gathered to witness this historic 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 intelligentization sweeping across the globe. During the 15th Five-Year Plan period (2026–2030), the domestic commercial vehicle market is expected to stabilize at around 3.2 million units, with new energy penetration projected to reach 50% by 2030 and L2+ intelligent driving adoption in commercial vehicles reaching 30%. At the same time, geopolitical competition is reshaping the global energy supply chain, elevating energy self-reliance to a strategic priority for nations and accelerating the commercial vehicle industry's shift from fuel-driven to electric-drive powertrains.

Based on a deep reading of these industry trends, BAIC Foton and ZF signed a strategic agreement in April 2023 to introduce ZF's latest electric drive technology to China for the first time, with production localized 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 plant — turning this strategic blueprint into reality.

As ZF's integrated electric drive axle platform designed for the next generation of commercial vehicles, the AxTrax 2 is applicable to medium- and heavy-duty trucks. Its modular architecture replaces the engine, transmission, drive shaft, differential, and conventional axle to deliver full commercial vehicle electrification. The unit rolled off the line today is equipped with a silicon carbide (SiC) inverter on a 930V platform, delivering 210 kW of continuous output power and 26,000 N·m of peak torque. It features a 3-speed transmission with an electronic shift actuator, a compact design that maximizes battery packaging space, and full synchronization with the vehicle's braking, ADAS, and autonomous driving systems — providing an efficient, intelligent system-level solution for the electrification of commercial vehicles.

02. Jiaxing Base Empowers Growth — Joint Venture Reaches a New Level

Since BAIC Foton and ZF established their joint venture in Jiaxing in 2017, cooperation between the two parties has continued to deepen. To date, the BAIC Foton–ZF transmission joint venture plant has generated cumulative sales of RMB 20 billion. With its advanced production systems and intelligent equipment, the Jiaxing base is becoming a key manufacturing, R&D, and functional headquarters site for ZF in the Asia-Pacific region. The official roll-off of the AxTrax 2 electric drive axle represents a critical step in extending the partnership from traditional transmissions into the electric drive domain.

In his address, Lu Zhenghua expressed heartfelt thanks to the Jiaxing Municipal Party Committee, the municipal government, the Economic and Technological Development Zone, and relevant departments for their longstanding care and support of the BAIC Foton–ZF transmission joint venture. He extended his highest 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 march, and put forward three expectations for the joint venture's future:

First, sustain technological leadership by fully leveraging ZF's global technology strengths and BAIC Foton's vehicle-and-scenario advantages, accelerating the efficient conversion of the electric drive axle from a technology pipeline into commercial deliveries.

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 efficiency by relying on the resilience and scale advantages of China's industrial chain, accelerating the localization of components so that world-class electric drive axles benefit customers with even better value for money — helping new energy commercial vehicles accelerate their transition from "policy-driven" to "market-driven" demand.

03. Anchored on the 15th Five-Year Plan — Driving the Green Transition of Commercial Vehicles

Standing at the opening of the 15th Five-Year Plan period, the mass production roll-off of the AxTrax 2 electric drive axle is yet another significant achievement in BAIC Foton's push to realize its three major strategies: full internationalization, full electrification, and full intelligentization. Facing an industry trend defined by the deep convergence of electrification and intelligentization and the restructuring of the global competitive landscape, BAIC Foton is using key technologies as its lever to build a vertically integrated synergy advantage across core components including batteries, electric drives, and electronic controls.

The official commissioning of the AxTrax 2 electric drive axle not only provides strong technical support for BAIC Foton's new energy commercial vehicle lineup, but also sets a benchmark for the localization of electric drive technology across China's commercial vehicle industry. Looking ahead, the BAIC Foton–ZF transmission joint venture will continue to drive a cost revolution through technological innovation and unlock efficiency gains through lean management, propelling new energy commercial vehicles into a new phase led by market demand.