ZF said it had received "a customer order" for eight-speed automatic transmissions "with a double-digit billion value".
The contract would run for "several years".
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The latest version of the transmission – in production since 2009 – now has an integrated electric drive and includes a hybrid variant.
Production starts in 2022 in Saarbruecken, the lead production facility. US and China output will follow.
ZF told a results press conference the deal was with BMW which builds vehicles in the same countries as ZF will make this gearbox.
"This business win is the largest single order in the history of ZF," said CEO Wolf-Henning Scheider.
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By GlobalData"When it comes to the electrification of passenger cars, in addition to pure electric drives, it confirms our strategy to focus on plug-in hybrids as an every-day solution and to develop attractive products in these areas."
ZF said: "The order was based on the fact that the customer sees our technology as a sustainable drive solution for its vehicles which supports them in achieving CO2 targets. In addition, the possibility to easily change from one transmission variant to another allows our customer the flexibility to react to market requirements."
"Alongside the significant CO2 savings potential, this high degree of flexibility is resulting in strong interest in our transmission. We are in very promising discussions with other customers."
