ZF, a globally renowned German transmission manufacturer, is well-known to Chinese car consumers but still less familiar to truck users in China. Recognizing the vast development potential of the lagging Chinese truck market, ZF has established 18 factories across China since 2006. Among them is ZF Transmission Technology (Hangzhou) Co., Ltd., which specializes in the development, production, and sales of commercial vehicle gearboxes. At the time of the company’s establishment, Wolfgang Vogel, Executive Director of ZF Group’s Commercial Vehicle and Special Drive Systems, stated: “It is the right time for ZF’s truck transmission project to enter China. The Chinese commercial vehicle market will continue to grow in the coming years, and 16-speed synchronized gearboxes are becoming increasingly essential for automakers.â€
In 2007, the booming truck market marked a solid step forward for ZF, which had just entered the Chinese market. Mr. Holzner, General Manager of ZF Drive Technologies (Hangzhou) Co., Ltd., recalled: “The large-scale implementation of weight-based toll collection, rising fuel prices, and the formation of China’s expressway network prompted a reshuffling in the transportation industry. This led to point-to-point long-distance transport and city-centered logistics distribution becoming the main modes of transport. This situation created a huge market for high-powered, large-displacement, and high-profile trucks. ZF recognized this opportunity and made the right move. Later, it proved that we were correct.â€
Looking ahead, ZF aims to foster a sense of responsibility in the Chinese market. Although its sales figures in Hangzhou have not fully met the expectations of the ZF board, the company sees each investment as a long-term commitment. Wei Guoqing, Director of Marketing and Sales at ZF Transmission Technology (Hangzhou) Co., Ltd., emphasized that ZF's international success confirms their choice was right. He noted that China’s road conditions are similar to those in Europe, making ZF’s transmissions ideal for the local market. With features like high speed ratios, strong hill-climbing power, multiple gears, and smooth shifting, ZF transmissions meet the growing demand for high-performance trucks.
With the full implementation of the national standard in 2008, ZF’s advantages will become more evident. Its 16-speed transmission offers a higher overall speed ratio, suitable for China’s three-engine characteristics. It ensures sufficient climbing ability while increasing both maximum and economic speeds. Mr. Holzner added that while the National III standard may reduce overall truck sales, ZF’s market share is expected to grow due to increased sales in the high-end segment. ZF plans to work closely with OEMs to introduce new products aligned with market needs and policy changes.
As an independent foreign investor, ZF does not see itself as a bystander. From product introduction to market adaptation, the company shows a deep sense of responsibility. The Ecosplit gearbox, produced at the Hangzhou plant, is one of ZF’s highest-end manual gearboxes globally. Mr. Holzner stressed that ZF brings only advanced technology to China, aiming to lead the market to a higher level. He also mentioned that ZF will introduce its world-leading AMT technology in 2008 to improve working conditions for Chinese truck drivers.
When asked about localization efforts to reduce costs and increase market share, Mr. Holzner assured reporters that ZF will not compromise on quality. He emphasized that good products lead to good returns, and efficient processes are key. Director Wei humorously noted that developing a new product is easier than lowering quality.
Indeed, the German emphasis on quality is well known. ZF chose Hangzhou not only for its strategic location but also for the mature technical capabilities of suppliers in Jiangsu and Zhejiang. ZF’s technicians spent 6–8 months working with local suppliers to ensure products met German standards. The production line in Hangzhou is internationally standardized, reflecting ZF’s belief in high-quality products for the Chinese market.
Zhejiang Fuhua Group’s Fu is one of the biggest beneficiaries of ZF transmissions. After purchasing a Dongfeng Tianlong equipped with ZF gearboxes, he found the performance excellent, meeting both speed and reliability requirements. The maintenance cost was well-controlled, and the clutch lasted longer than expected. Fu said, “ZF truly became my career in the transmission.â€
At the end of 2007, Dongfeng Commercial Vehicle Co., Ltd., a key partner of ZF, held a special promotion event for the Dongfeng Tianlong Heavy Trucks equipped with ZF transmissions. The event highlighted the importance of their partnership and confidence in future sales. Dongfeng Tianlong, a leading high-end heavy truck in China, sold over 20,000 units in under two years, with ZF providing 100% of its gearboxes.
As ZF aims for 10% market share in China by 2008, it faces challenges in making high-priced products acceptable in a rapidly changing market. Through dialogue with Mr. Holzner, it’s clear that ZF is accelerating its efforts in the Chinese market. Despite being a foreign enterprise with an annual output of only 30,000 units, ZF is focused on targeting mid- and high-end segments. As Mr. Holzner concluded, “Offensive is the best defense.â€
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