BAIC Foton and ZF Strategic Cooperation Yields New Fruit — 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 milestone — the first AxTrax 2 electric drive axle rolled off the production line at the joint venture factory in Jiaxing. This achievement marks BAIC Foton's acquisition of key influence in the field of new-energy core components for commercial vehicles, representing a critical leap from strategic planning to tangible implementation. Government and industry leaders, including 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; and Andreas Moser, Member of the Board of Management of ZF Group and Head of Commercial Vehicle Solutions and Industrial Technology, along with hundreds of guests from government, shareholders, partners, and media, gathered to witness this historic moment.

01 Aligning with Industry Transformation — Strategic Layout Bears Fruit

Today, the automotive industry is experiencing a once-in-a-century transformation, with electrification and intelligentization sweeping the globe. During the 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 autonomous driving in commercial vehicles reaching 30%. Meanwhile, geopolitical competition is reshaping the global energy supply chain, and energy independence has become a strategic priority for nations worldwide, accelerating the commercial vehicle industry's transition from fuel-driven to electric-driven powertrains.

Based on a profound understanding 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 established in Jiaxing. After three years of careful construction and preparation, the AxTrax 2 electric drive axle was officially rolled off the line at the joint venture factory, marking the realization of this strategic vision from blueprint to reality.

As ZF's integrated electric drive axle platform designed for next-generation commercial vehicles, the AxTrax 2 is applicable to medium- and heavy-duty vehicles. Its modular design replaces the engine, transmission, drive shaft, differential, and conventional axle, enabling the electrification of commercial vehicles. The product that rolled off the line is equipped with a silicon carbide inverter on a 930V platform, delivering a continuous output power of 210 kW and a peak torque of 26,000 N·m. It features a 3-speed transmission with an electronic shift actuator. Its compact design maximizes battery placement 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 Reaches New Heights

Since BAIC Foton and ZF established their joint venture in Jiaxing in 2017, the partnership between the two sides has been continuously deepening. To date, the BAIC Foton-ZF transmission joint venture factory has achieved cumulative sales 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 critical step in extending the partnership from the traditional transmission sector into the electric drive domain.

In his address, Lu Zhenghua expressed heartfelt gratitude to the Jiaxing Municipal Party Committee, the 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 paid tribute to the project team and all employees who worked tirelessly to overcome challenges. He stated 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:

First, continue to lead with technology by fully leveraging ZF's global technological advantages and BAIC Foton's vehicle application 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 logistics and regional transportation, accelerating the value conversion from "production delivery" to "customer profitability";

Third, advance localization and cost reduction by relying on the resilience and scalability of the domestic supply chain, accelerating the localization of components so that world-class electric drive axles benefit customers at a more competitive price point, helping new energy commercial vehicles accelerate their transition from "policy-driven" to "market-driven" growth.

03 Anchored in the 15th Five-Year Plan — Supporting Green Transformation of Commercial Vehicles

Standing at the critical starting point of the 15th Five-Year Plan period, the mass production roll-off of the AxTrax 2 electric drive axle is another significant achievement in BAIC Foton's advancement of its three major strategies: "comprehensive internationalization, comprehensive new energy, and comprehensive intelligentization." Facing the industry trend of deep integration between electrification and intelligentization, along with the restructuring of the global landscape, BAIC Foton is leveraging key technologies to build vertically integrated synergies in core components such as 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 vehicles but also sets a benchmark for the localized development of electric drive technology in China's commercial vehicle industry. Looking ahead, the BAIC Foton-ZF transmission joint venture factory will continue to drive cost revolution through technological innovation, unlock efficiency through lean management, and push new energy commercial vehicles toward a new stage of market-driven growth.