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 Friedrichshafen AG yielded another landmark achievement — the first AxTrax 2 electric drive axle from the joint venture plant officially rolled off the production line in Jiaxing, Zhejiang Province. This milestone signals that BAIC Foton has secured a critical voice in the core components sector for new energy commercial vehicles, completing a key leap from strategic planning to tangible execution. Distinguished guests 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 Party Secretary and General Manager of BAIC Group and Chairman of BAIC Foton; Lu Zhenghua, Party Secretary 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 ZF Group Board of Management and Head of Commercial Vehicle Solutions and Industrial Technology Divisions, joined hundreds of guests from government, shareholders, partners, and the media to witness this historic moment.

01 Aligning with Industry Transformation, Strategic Positioning Delivers Results

Today, the automotive industry is experiencing a once-in-a-century transformation, with electrification and intelligentization sweeping the globe. During China's 15th Five-Year Plan period, the domestic commercial vehicle market is expected to stabilize at approximately 3.2 million units, with new energy penetration projected to reach 50% by 2030 and L2+ level intelligent driving adoption reaching 30%. Meanwhile, geopolitical dynamics are reshaping global energy supply chains, and energy self-sufficiency has been elevated to a strategic priority for nations worldwide, compelling the commercial vehicle industry to accelerate its transition from fuel-powered to electric-drive systems.

Based on a deep 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 based in Jiaxing. After three years of meticulous construction and preparation, the AxTrax 2 electric drive axle officially rolled off the line at the joint venture plant, transforming this strategic blueprint into reality.

As ZF's integrated electric drive axle platform designed for next-generation commercial vehicles, the AxTrax 2 can be applied to medium and heavy-duty vehicles. Its modular design replaces the engine, transmission, drive shaft, differential, and conventional axle, enabling full electrification of commercial vehicles. The product that rolled off the line features a silicon carbide inverter on a maximum 930V platform, delivering 210 kW of continuous output power and 26,000 N·m of peak torque. Equipped with a 3-speed transmission and 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, cooperation between the two parties has been continuously deepening. To date, the BAIC Foton–ZF transmission joint venture plant has achieved cumulative sales revenue of 20 billion yuan. With its advanced production systems and intelligent equipment, the Jiaxing base is becoming a key manufacturing, R&D, and functional headquarters for ZF in the Asia-Pacific region. The official launch 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 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 plant. He paid tribute to the project team and all employees who worked day and night to overcome challenges. He stated that the new product's launch is only the first step of a long journey and put forward three expectations for the joint venture's future:

First, continue to lead through technology by fully leveraging ZF's global technology advantages and BAIC Foton's vehicle platform and application scenario strengths, accelerating the efficient conversion of electric drive axle technology from R&D reserves to commercial deliveries.

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

Third, advance localization and cost reduction by relying on the resilience and scale advantages of the domestic supply chain, accelerating component localization, and making globally-quality electric drive axles more cost-effective for customers, helping new energy commercial vehicles accelerate their transition from "policy-driven" to "market-driven."

03 Anchoring the 15th Five-Year Plan, Driving Green Transformation of Commercial Vehicles

Standing at the pivotal starting point of the 15th Five-Year Plan, the mass production launch of the AxTrax 2 electric drive axle is yet another important achievement in BAIC Foton's advancement of its three major strategies: "Full Internationalization, Full New Energy, and Full Intelligence." Facing industry trends of deep integration between electrification and intelligentization, and the restructuring of global dynamics, BAIC Foton is leveraging key technologies to build a vertically integrated synergy advantage in core components including 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. Looking ahead, the BAIC Foton–ZF transmission joint venture plant will continue to drive a cost revolution through technological innovation and unlock efficiency through lean management, propelling new energy commercial vehicles toward a new era of market-driven growth.