ZF "Accelerate shifting" in China

ZF, a globally renowned German transmission manufacturer, is well-known to Chinese car consumers but less familiar to truck users in China. Recognizing the vast potential of the underdeveloped Chinese truck market, ZF has established 18 factories in China since 2006. Among them is ZF Transmission Technology (Hangzhou) Co., Ltd., which focuses on the development, production, and sales of commercial vehicle gearboxes. At the time of its establishment, Wolfgang Vogel, Executive Director of ZF Group’s Commercial Vehicle and Special Drive Systems, stated: “This is the right time for ZF’s truck transmission project to enter China. The Chinese commercial vehicle market is expected to grow significantly in the coming years, with an increasing demand for 16-speed synchronous gearboxes.” 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 implementation of weight-based toll collection, rising fuel prices, and the expansion of China’s expressway network led to a transformation in the transportation industry. Long-distance inter-provincial transport and city-centered logistics became dominant, creating a strong demand for high-powered, large-displacement trucks. ZF seized this opportunity, and it proved to be the right move.” Looking ahead, ZF is committed to fostering a sense of responsibility in the Chinese market. Although Hangzhou’s sales figures didn’t fully meet expectations, ZF sees long-term value in its investment. Wei Guoqing, Director of Marketing and Sales at ZF Transmission Technology (Hangzhou) Co., Ltd., emphasized that ZF’s international success proves their decision was correct. 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, and smooth shifting, ZF’s products align perfectly with the needs of the growing Chinese truck industry. With the full implementation of national standards in 2008, ZF’s advantages will become even more evident. Its 16-speed transmission, with a higher overall speed ratio, suits the three-engine characteristics of China’s trucks, ensuring better performance and efficiency. 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 demand in the high-end segment. ZF is focused on building relationships with OEMs and introducing new products that match evolving market needs. As an independent foreign investor, ZF takes its role in the Chinese market seriously. From product introduction to quality control, the company shows a deep commitment to the region. The Ecosplit gearbox, produced in the Hangzhou plant, is one of the most advanced manual gearboxes in ZF’s global lineup. Mr. Holzner stressed that ZF brings cutting-edge technology to China, aiming to elevate the local market and create mutual benefits. ZF also adapts its products to suit local conditions, working closely with OEMs to ensure compliance with German standards. Regarding localization efforts, Mr. Holzner assured that ZF will not compromise quality for cost reduction. “We believe good products bring good returns,” he said. Director Wei joked that developing new products is always better than lowering quality. ZF’s initial site selection in Hangzhou was based on the mature technical capabilities of suppliers in Jiangsu and Zhejiang provinces. Technicians spent months working with local companies to produce components that met strict German certification standards. The Hangzhou production line follows international standards, reflecting ZF’s belief that high-quality products are essential for the Chinese truck market. As the market evolves, ZF’s quality advantage becomes more prominent. Zhejiang Fuhua Group’s Fu, a major user of ZF-equipped Dongfeng Tianlong trucks, praised the transmission’s performance, noting its reliability, low maintenance costs, and long lifespan. In 2007, Dongfeng Commercial Vehicle Co., Ltd. held a special promotion event for its Tianlong trucks equipped with ZF transmissions, highlighting the strong partnership between the two companies. Dongfeng Tianlong, a top-tier heavy truck in China, sold over 20,000 units in less than two years, with ZF providing 100% of its gearboxes. As ZF aims for a 10% market share by 2008, it continues to focus on the mid- and high-end markets, believing that proactive strategies are key to success. Despite competition and challenges, ZF remains determined to capture market share in the unique Chinese truck industry. With its clear vision and commitment to quality, the German company is steadily shifting gears in the Chinese market, adapting "German speed" to fit "Chinese needs."

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