ZF China 40th Years’ Anniversary: Double Down on China for Next Generation Mobility

Over the past 40 years, China has become one of ZF's most important strategic markets. Currently, sales from the Asia Pacific region account for about 20% of the total of ZF Group. The Asia Pacific region aims to increase the proportion of sales to 30% by 2030.

As part of the 40th anniversary celebration, ZF launches a one-week test ride and drive activity from November 15th to 19th, named "Next Generation Mobility Days," at Shanghai F1 international circuit, to showcase ZF's comprehensive product portfolio and technologies, covering automated driving, e-mobility, vehicle motion control and integrated safety. Government officials, representatives of industry associations, customers and media from all over the country will attend the event.

"We are proud to be part of the social and economic fabric in China for the long term. We are doubling down on China. We are introducing state-of-the-art technologies here and now, contributing to the development of China's automotive industry. We are at the forefront of the industry through collaboration with our partners, and we are playing a greater role in an open ecosystem. China is becoming an epicenter of ZF global products and functionalities,” said Dr. Holger Klein.

Ms. Renee Wang, President of China and Senior Vice President Operations Asia Pacific, said: "ZF will continue to cultivate the Chinese market, enhance innovation and development capability, promote digital manufacturing, stay close to and lead the market and technology trends, firmly assume social responsibility, make contributions to China's sustainable development, and join hands with Chinese partners to shape Next Generation Mobility."

ZF business in China can be dated back to 1981, when it obtained its first license for the import and export of gearboxes. Its first plant went into operation in 1994, and its first tech center was set up in 2004.

In recent years, ZF is shifting gravity to China, which is a promising growth market. Dr. Holger Klein became ZF’s Board of Management member for the Asia Pacific region based in Shanghai in 2019. Meanwhile, all ZF divisions are actively operating in China and an increasing number of Chinese senior executives are taking up global positions. A new Asia Pacific headquarters went into operation in 2021.

Today, the number of ZF China employees has exceeded 20,000 and its sales reached 6.4 billion Euros in 2020. Nearly 50 plants and four technology centers are operating in more than 20 cities.

Upgrading China's automotive industry and leading new trends in next-generation mobility

ZF continues to transform itself into a technology company. China plays an important role in this process and is becoming an important base for ZF global product and technology development. Together with global teams, the ZF China team is fully committed to driving the transformation of China's automotive industry towards software, automated driving, electrification, and to leading the next generation of mobility trends.

Software has rapidly become a new global trend, driving Next Generation Mobility. One example of software-driven connected chassis functions is ZF´s cubiX. This software component gathers sensor information from the entire vehicle and environment and prepares it for an optimized control of active systems in the chassis, steering, brakes and propulsion systems. Following an open source application approach, cubiX will support components from ZF as well as third-party components.

In China, ZF has now won two major customers for cubiX. “With the launch of cubiX, we have reached a new milestone of seeing future technology on the roads in the near future. This launch also shows that China is becoming more and more important in initiating global technology launches, as cubiX is ZF’s first software as a product vehicle motion control system under contract,” said Dr. Holger Klein. SOP for cubiX is planned for 2023. At the same time ZF will offer cubiX either as part of an overall system or as an individual software component.

At the Shanghai Auto Show in April 2021, ZF launched the new generation of ZF ProAI, designed for the "Software Defined Vehicle" and new electronic and electrical architectures. It is the most flexible, scalable, and powerful supercomputer in the market.

The new generation of ZF ProAI is applicable to any vehicle model and supports autonomous or automated driving at all levels from L2 to L5. Its SOP will be in 2024. The ZF AP team, based in Shanghai, is working closely with the global team to respond quickly to Chinese and global customer needs.

In the area of autonomous driving, ZF offers the latest technology for the Chinese market. In early 2020, ZF launched a complete L2 single lane intelligent driving system based on single camera, which has been equipped on the popular model of a leading SUV model. Later, ZF launched coASSIST level 2+ semi-automated driving on the 2020 Dongfeng Aeolus Yixuan. It’s the most affordable Level 2+ system in the industry. Meanwhile, the enhanced coASSIST system on the Aeolus Yixuan MAX features ZF’s S-Cam 4.8 Camera and mid-range radar.

In addition, ZF has received a production order from SAIC for its long-range image radar technology to fuel its local production.

In June 2021, ZF signed a strategic cooperation agreement with CalmCar, a local start-up, for the joint development of an automatic valet parking system (AVP).

The OnGuardMAX system brings the dream of autonomous driving for commercial vehicles on the motorway one step closer. In April this year, ZF launched OnGuardMAX™, an automatic emergency braking system that meets the requirements of the latest safety regulations, with China as its initial market. The system fully meets the AEBS regulations introduced in China, including the pedestrian safety function.

At the same time, ZF is developing autonomous shuttles in Europe. At present, shuttle buses equipped with ZF autonomous driving functions have gone into operation in Europe, the Middle East and Asia. Chinese partners are also in discussions with ZF on developing autonomous shuttles for China.

E-mobility is one of the key technology domains of ZF. In the area of E-mobility technology, ZF has won orders of more than 2 billion Euros in the field of electric drive system in China since 2018.

In the third quarter of 2021, ZF's Electrified Powertrain Technology Division continued to win new orders for E-mobility. ZF will design and produce "three in one" electric axle drives for a traditional European luxury brand and a local leading start-up company, with contracts worth more than 2 billion Euros. SOP of the products be will begin in China at the end of 2023. ZF will also provide fully localized electrified powertrain systems for car manufacturer. Two e-mobility plants will go into operation in Hangzhou in eastern China and Shenyang in northeastern China in 2022 and 2023.

Sustainable development in China

ZF is pursuing corporate responsibility in green energy and low carbon outlay and is committed to realizing the future vision of "zero emission and zero accident." The goal is to achieve carbon neutrality by 2040 – 10 years earlier than the Paris Climate Agreement.

In addition to its efforts to promote the development of electric vehicles in China, ZF is also major player in the field of industrial applications. In terms of renewable power generation, ZF's wind power gearbox units are among the best in the industry in terms of performance, quality and efficiency. One in every four wind turbines in the world is equipped with a ZF gearbox. These turbines are enough to provide the renewable energy needed by 100 million households. ZF Wind Power (Tianjin) Co., Ltd. unveiled the first serial production of its Vidar powertrain. In the area of solar energy, ZF Transmissions Shanghai Co., Ltd. has installed 1.6mwp solar photovoltaic power generation equipment on its roof and has been successfully put into use.

ZF is committed to providing comprehensive technical solutions from software to hardware for Chinese and global customers, supporting the sustainable development goals of "carbon peaking" and "carbon neutrality", and working with customers and industry partners to create green, safe, comfortable and affordable mobility solutions for the next generation in China and around the world.