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 Friedrichshafen AG yielded another milestone — the first AxTrax 2 electric drive axle officially rolled off the production line at the two companies' joint venture plant in Jiaxing. This achievement marks BAIC Foton's acquisition of key voice and initiative in the core components sector for new energy commercial vehicles, completing a critical leap from strategic planning to actual implementation. 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 Board of Management of ZF Group and Head of Commercial Vehicle Solutions and Industrial Technology Divisions; along with hundreds of guests from government, both shareholder parties, partners, and the media, gathered to witness this milestone moment together.

01 — Aligning with Industry Transformation, Strategic Layout Yields Fruitful Results

Today, the automotive industry is experiencing profound changes unseen in a century, with electrification and intelligence 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 intelligent driving in commercial vehicles reaching 30%. Meanwhile, geopolitical competition is reshaping the global energy supply chain, and energy independence has been elevated to a strategic priority for nations worldwide, compelling the commercial vehicle industry to accelerate its transition from fuel-driven to electric-driven propulsion.

Based on a deep insight into industry trends, in April 2023, BAIC Foton and ZF signed a strategic agreement to introduce ZF's latest electric drive technology to China for the first time, with production located 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, 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-duty vehicles. Its modular design replaces the engine, transmission, driveshaft, differential, and conventional axle to achieve commercial vehicle electrification. The product rolled off the line this time is equipped with a silicon carbide inverter on a platform of up to 930V, delivering a continuous output power of 210 kW and a peak torque of 26,000 N·m. It features a 3-speed transmission and electronic gear-shifting actuator. While its compact design maximizes battery placement space, it achieves 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 New Heights

Since BAIC Foton and ZF established their joint venture in Jiaxing in 2017, cooperation between the two parties has continuously deepened. To date, the BAIC Foton–ZF transmission joint venture plant has achieved cumulative sales of 20 billion RMB. Leveraging 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 speech, Lu Zhenghua expressed heartfelt gratitude to the Jiaxing Municipal Party Committee, Municipal Government, Economic Development Zone, and relevant departments for their long-standing care and support for the development of the BAIC Foton–ZF transmission joint venture plant. He also extended high respect to the project team and all employees who worked day and night to overcome difficulties. 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, maintain continuous technological leadership by fully leveraging ZF's global technology advantages and BAIC Foton's vehicle-scenario advantages, accelerating the efficient conversion of the electric drive axle from technology reserves to commercial delivery.

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

Third, promote localization and cost reduction/efficiency improvement by relying on the resilience and scale advantages of the domestic industrial chain, accelerating the localization of components, so that electric drive axles of global quality benefit customers with better cost-performance ratios, helping new energy commercial vehicles accelerate their transition from "policy-driven" to "market-driven."

03 — Anchored on the "15th Five-Year Plan," Empowering the Green Transformation of Commercial Vehicles

Standing at the critical juncture of the opening year of the "15th Five-Year Plan," the mass production roll-off of the AxTrax 2 electric drive axle is another important achievement in BAIC Foton's advancement of its three major strategies: "Comprehensive Internationalization, Comprehensive New Energy, and Comprehensive Intelligence." Facing the industry trend of deep integration between electrification and intelligence, and the restructuring of the global landscape, BAIC Foton is using key technologies as leverage to build vertical integration synergies 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 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 plant will continue to drive cost revolution through technological innovation and unlock efficiency potential through lean management, pushing new energy commercial vehicles to accelerate toward a new stage driven by market forces.