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

On June 22, the strategic partnership between BAIC Foton and ZF (ZF Friedrichshafen) yielded new fruit — the first AxTrax 2 electric drive axle rolled off the production line at the joint venture factory in Jiaxing, China. This milestone marks BAIC Foton's acquisition of a key voice in the field of new energy core components for commercial vehicles, achieving a critical leap from strategic planning to 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 ZF Group Board of Management and Head of Commercial Vehicle Solutions and Industrial Technology Divisions, along with hundreds of guests from government, shareholders, partners, and media, gathered together to witness this milestone moment.

01 Adapting to Industry Transformation, Strategic Layout Bears Fruit

The automotive industry is currently experiencing a once-in-a-century transformation, with the waves of electrification and intelligence sweeping the globe. During the 15th Five-Year Plan period, China's commercial vehicle market is expected to stabilize at around 3.2 million units, with the new energy penetration rate projected to reach 50% by 2030, and commercial vehicle L2+ intelligent driving reaching 30%. Meanwhile, geopolitical competition is reshaping the global energy supply chain landscape, and energy independence has risen to become a strategic priority for nations, driving the commercial vehicle industry to accelerate its transition from fuel-driven to electric-drive powertrains.

Based on a profound 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 based in Jiaxing. After three years of meticulous construction and preparation, the AxTrax 2 electric drive axle was officially launched at the joint venture factory, marking the transformation of this strategic blueprint into reality.

As an integrated electric drive axle platform developed by ZF for next-generation commercial vehicles, AxTrax 2 can be applied to medium and heavy-duty vehicles. Its modular design replaces the engine, transmission, drive shaft, differential, and conventional axle to achieve commercial vehicle electrification. The product launched this time features a silicon carbide inverter on a platform of up to 930V, 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 gear-shift actuator, it maximizes battery placement space through its compact design while fully synchronizing with the vehicle's braking, ADAS, and autonomous driving systems, providing an efficient and intelligent system solution for commercial vehicle electrification.

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 sides has been continuously deepening. Currently, the BAIC Foton–ZF transmission joint venture factory has achieved cumulative sales of 20 billion yuan (approximately $2.8 billion USD). The Jiaxing base, with its advanced production systems and intelligent equipment, is becoming an important manufacturing, R&D, and functional headquarters for ZF in the Asia-Pacific region. The official launch of the AxTrax 2 electric drive axle is a key step in extending cooperation from traditional transmission fields to electric drive technology.

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 factory, and paid high tribute to the project team and all employees who worked day and night to overcome challenges. He stated that the launch of the new product is just 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 — fully leverage ZF's global technology advantages and BAIC Foton's vehicle scenario advantages to accelerate the efficient conversion of electric drive axles from technology reserves to product delivery.

Second, deepen customer value — focus on core scenarios such as trunk-line logistics and regional transportation to accelerate the value conversion of products from "production delivery" to "customer profitability."

Third, promote localization and cost efficiency — rely on the resilience and scale advantages of the domestic industrial chain to accelerate component localization, making world-quality electric drive axles more cost-effective for customers, and helping new energy commercial vehicles accelerate the transition from "policy-driven" to "market-driven."

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

Standing at the critical juncture of the opening year of the 15th Five-Year Plan, the mass production launch of the AxTrax 2 electric drive axle is another important achievement in BAIC Foton's three major strategies of "Full Internationalization, Full New Energy Transition, and Full Intelligence." Facing the industry trend of deep integration of electrification and intelligence and the restructuring of the global landscape, BAIC Foton is leveraging key technologies to build a vertically integrated synergy advantage in core components such as batteries, electric drives, and electronic controls.

The official production launch 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 localization of electric drive technology in China's commercial vehicle industry. In the future, the BAIC Foton–ZF transmission joint venture factory will continue to drive cost revolution through technological innovation, unlock efficiency potential through lean management, and push new energy commercial vehicles to accelerate toward a new stage of market-driven growth.