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 bore new fruit — the first AxTrax 2 electric drive axle rolled off the production line at the two companies' joint venture plant in Jiaxing, Zhejiang Province. This milestone marks BAIC Foton's acquisition of critical voice and influence in the core component segment for new energy commercial vehicles, achieving a key leap from strategic planning to on-the-ground execution.

Distinguished guests attended the ceremony, 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 Committee 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 the Commercial Vehicle Solutions and Industrial Technology divisions. Hundreds of guests from government, both shareholder parties, partners, and the media gathered to witness this landmark moment.

01 Aligning with Industry Transformation: Strategic Layout Bears Fruit

The automotive industry is currently experiencing once-in-a-century upheaval, with electrification and intelligentization sweeping the globe. During the 15th Five-Year Plan period, China's 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+ level intelligent driving in commercial vehicles expected to hit 30%. Meanwhile, geopolitical competition is reshaping global energy supply chain dynamics, and energy independence has risen to become a core strategic priority for nations worldwide, compelling the commercial vehicle industry to accelerate its transition from fuel-driven to electric-drive powertrains.

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 careful construction and preparation, the AxTrax 2 electric drive axle has officially entered production at the joint venture plant, turning 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, driveshaft, differential, and conventional axle to achieve full commercial vehicle electrification. The product that rolled off the line features a silicon carbide inverter on a platform supporting up to 930V, 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, the compact design maximizes available space for battery placement while achieving full synchronization with vehicle braking, ADAS, and autonomous driving systems — providing an efficient, intelligent system-level solution for commercial vehicle electrification.

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 has deepened continuously. The transmission joint venture plant has now achieved cumulative sales of 20 billion RMB. 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 roll-off of the AxTrax 2 electric drive axle represents a critical step in extending the partnership from traditional transmissions into the electric drivetrain domain.

In his remarks, Lu Zhenghua expressed heartfelt gratitude to the Jiaxing Municipal Party Committee, Municipal Government, the Economic Development Zone, and relevant departments for their longstanding care and support of the BAIC Foton–ZF transmission joint venture. He paid tribute to the project team and all employees who worked day and night to overcome challenges. He stated that the roll-off of the new product is merely the first step of a long march, and set out three expectations for the joint venture's future:

• Sustained technological leadership — fully leveraging ZF's global technology strengths and BAIC Foton's vehicle platform and application scenario advantages to accelerate the efficient conversion of electric drive axle technology from R&D reserves to commercial delivery;
• Deepening customer value — focusing on core scenarios such as trunk logistics and regional transportation, accelerating the value conversion from "roll-off and delivery" to "customer profitability";
• Promoting localization and cost reduction — relying on the resilience and scale advantages of China's domestic supply chain to accelerate component localization, bringing world-class quality electric drive axles to customers at better value, and helping new energy commercial vehicles accelerate their shift from "policy-driven" to "market-driven."

03 Anchoring the 15th Five-Year Plan: Empowering Green Transformation in Commercial Vehicles

Standing at the critical 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 push toward its three major strategies: "Comprehensive Internationalization, Comprehensive New Energy Transition, and Comprehensive Intelligentization." Facing the industry trend of deep convergence between electrification and intelligentization amid a reshaping global landscape, BAIC Foton is using key technologies as levers to build vertically integrated synergistic advantages in core components including batteries, electric drives, and electronic controls.

The official production launch of the AxTrax 2 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 in China's commercial vehicle industry. Looking ahead, the BAIC Foton–ZF transmission joint venture will continue to drive a cost revolution through technological innovation, unlock efficiency potential through lean management, and propel new energy commercial vehicles into a new phase of market-driven growth.