BAIC Foton and ZF's Strategic Partnership Bears Fruit: First AxTrax 2 e-Drive Axle Rolls Off the Production Line

On June 22, the strategic partnership between BAIC Foton and ZF once again yielded fruitful results—the first AxTrax 2 e-drive axle rolled off the production line at their joint venture factory in Jiaxing, marking a critical milestone in BAIC Foton's mastery of key technologies in the commercial vehicle new energy core components sector, achieving a vital leap from strategic planning to tangible 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, Party Secretary and General Manager of BAIC Foton; Cui Shipeng, Vice President of BAIC Foton and Chairman of ZF Foton; Andreas Moser, Member of the ZF Board of Management responsible for the Commercial Vehicle Solutions and Industrial Technology Divisions; along with hundreds of distinguished guests from government, shareholders, partners, and media gathered together to witness this milestone moment.

01 Following the Trend of Industrial Transformation, Strategic Layout Bears Fruit

The automotive industry is currently undergoing a transformation of unprecedented magnitude, with electrification and intelligent technologies sweeping across 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 new energy penetration projected to reach 50% by 2030 and L2+ intelligent driving in commercial vehicles to reach 30%. Meanwhile, geopolitical dynamics are reshaping the global energy supply chain, making energy independence a strategic priority for nations worldwide, which is accelerating the transition of the commercial vehicle industry from fuel-driven to electric-driven systems.

Based on profound insights into these industry trends, in April 2023, BAIC Foton and ZF signed a strategic agreement to introduce ZF's latest e-drive technology to China for the first time, with production based in Jiaxing. After three years of meticulous construction and preparation, the AxTrax 2 e-drive axle officially rolled off the production line at the joint venture factory, turning this strategic blueprint into reality.

As ZF's integrated e-drive axle platform designed for the next generation of commercial vehicles, the AxTrax 2 can be applied to medium and heavy-duty vehicles. Its modular design replaces engines, transmissions, drive shafts, differentials, and conventional axles to achieve commercial vehicle electrification. The product features a 930V platform silicon carbide inverter, delivering a continuous output power of 210 kW and a peak torque of 26,000 N·m, equipped with a 3-speed transmission and electronic shift actuator. While maximizing battery layout space through compact design, it achieves full synchronization with vehicle 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, the cooperation between the two parties has continuously deepened. To date, the BAIC Foton-ZF transmission joint venture factory has achieved cumulative sales of 20 billion RMB. With its advanced production systems and intelligent equipment, the Jiaxing base is becoming an important manufacturing, R&D, and functional headquarters base for ZF in the Asia-Pacific region. The official rollout of the AxTrax 2 e-drive axle marks a crucial step in extending the partnership from traditional transmission领域 to the e-drive field.

In his speech, Lu Zhenghua expressed sincere gratitude to the Jiaxing Municipal Party Committee, Municipal Government, Economic Development Zone, and relevant departments for their longstanding support and care 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 emphasized that the new product launch is only the first step of a long journey, and put forward three expectations for the future development of the joint venture:

First, continue technological leadership by fully leveraging ZF's global technological advantages and BAIC Foton's vehicle scenario expertise to accelerate the efficient transformation of e-drive axles from technological reserve to commercial delivery;

Second, deepen customer value by focusing on core scenarios such as long-haul logistics and regional transportation, accelerating the value transformation from "production line delivery" to "customer profitability";

Third, promote localization and cost reduction by leveraging the resilience and scale advantages of the domestic industrial chain to accelerate component localization, allowing globally competitive e-drive axles to benefit customers at more optimal prices, helping new energy commercial vehicles accelerate from "policy-driven" to "market-driven" growth.

03 Aiming for 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 rollout of the AxTrax 2 e-drive axle represents another significant achievement in BAIC Foton's advancement of its three major strategies: "Comprehensive Internationalization, Comprehensive New Energy Transformation, and Comprehensive Intelligence." Facing the industry trends of deep integration of electrification and intelligence, and the restructuring of the global landscape, BAIC Foton is taking key technologies as its starting point, building vertically integrated competitive advantages in core components such as batteries, e-drives, and electronic controls.

The official production of the AxTrax 2 e-drive axle not only provides powerful technical support for BAIC Foton's new energy commercial vehicles but also sets a benchmark for the localization of e-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, explore efficiency space through lean management, and accelerate the new energy commercial vehicle sector toward a new stage of market-driven growth.