ZF Group poised to propel growth in China's automotive industry

The world's leading technology company and automotive supplier ZF Group has reinforced its dedication to boosting the high-quality development of China's automobile industry amid rapid advancements in intelligence and electrification.

Holger Klein, CEO of ZF Group, highlighted the effects of artificial intelligence on mobility during the China Development Forum in Beijing, which ran from March 23-24.

He noted that AI is transforming mobility, which is supported by interconnected systems that regulate vehicle dynamics in response to road conditions. A key part of this transformation involves ZF's development of cubiX. This is an AI-driven software that coordinates vehicle controllers such as steering, braking, and suspension, to improve driving smoothness, safety, and comfort.

As a leading global supplier of chassis technology, ZF provides an extensive range of electronically controlled steering and braking systems, as well as suspension systems. Combined with cubiX software, these technologies are laying the groundwork for software-defined vehicles.

ZF's Chinese team has made strides with AI-based off-road recognition software, which uses chassis data to enhance vehicle control on rough terrain, thereby improving safety and performance under challenging conditions, Klein said.

Moreover, ZF employs analytical AI algorithms to automate processes and optimize production efficiency. In its smart factories across China, AI-powered predictive maintenance minimizes downtime and ensures maximum production line efficiency. AI also plays a crucial role in the visual quality inspection of products, identifying even the smallest deviations to maintain high reliability.

"China has long been at the forefront of AI innovation, with leading technology firms and dynamic startups setting impressive standards. At ZF, we embrace the opportunities that AI provides and are proud to be part of this progressive journey," Klein said.

By leveraging AI, ZF enhances efficiency, productivity, innovation, and speed. The company is investing in robust data infrastructures, AI competencies, and workforce upskilling. The integration of AI spans various functions, including R&D, production, and operations, with more than 20 AI-driven projects across ZF's operations in China.

ZF's long-term commitment to the Chinese market is demonstrated through sustained investment, innovation, localization, and eco-partnerships, contributing to the advancement of China's auto industry.

"China, as the world's largest auto market, has always been strategic for the ZF Group. Many of our new products and cutting-edge technologies have made their world premieres in China in recent years," said Klein.

At its Zhangjiagang campus in Jiangsu province, ZF's localized active kinematics control system has achieved standard operating procedure since 2024. It has also been applied to domestic leading vehicle models. SOP of the Nio ET9 sedan, equipped with steer-by-wire system, is scheduled for the first quarter.

ZF's investment and innovation in China have remained steadfast over the past year. In August, ZF expanded production capacity for electric park braking calipers in Wuhan, Hubei province.

In November, ZF's third E-mobility plant in China began operations in Shenyang, Liaoning province. Simultaneously, an agreement was signed to expand an electric power steering system project in Shanghai.

Recently, ZF announced the creation of a joint venture in Guangzhou to develop automotive safety electronics.

To strengthen the "local for local "strategy, ZF is giving more autonomy to the region. Many operational decisions — from budget approvals to supplier and customer negotiations — now reside within the Asia-Pacific HQ in Shanghai.

ZF's R&D hubs in Shanghai, Jiaxing, Jinan and Guangzhou, led by Chinese engineers, have delivered many world premieres and recently pioneered AI-driven solutions tailored to regional pain points. China is now ZF's homeroom of global product lines and functions.

ZF is continuing to build its partner ecosystem. The company has deepened its strategic cooperation with Foton, a Chinese commercial vehicle manufacturer. The new hybrid transmission TraXon 2 Hybrid is set to debut globally in China.

Additionally, ZF has signed an agreement with Farizon, Geely's commercial vehicle brand, to develop a comprehensive range of new energy vehicle products and intelligent solutions.

"Over the past four decades, ZF has firmly established itself in China, demonstrating resilience and flexibility in a complex and dynamic market environment. We have been enhancing our competitiveness and swiftly responding to our customers' diverse needs," said Renee Wang, executive vice-president of ZF Group and president of ZF China and Operation Asia-Pacific.

"We will continue to promote localization across multiple levels, including production materials, equipment, R&D and talents, while strengthening eco-partnerships to better serve the Chinese market and drive industrial upgrading," she added.