German automotive components manufacturer ZF Friedrichshafen AG announced it had agreed to strengthen its strategic partnership with Chinese automaker Beiqi Foton Motor Company Ltd (Foton) in the area of hybrid transmissions for commercial vehicles.

The two companies signed a letter of intent on the sidelines of this week’s IAA Transportation 2024 exhibition in Hanover, Germany.

ZF and Foton already have a joint venture in Jiaxing, in China’s Zhejiang province, which produces ZF’s TraXon automatic transmissions and electric drives for commercial vehicles. ZF said it plans to further develop its new hybrid automated manual transmission system, TraXon 2 Hybrid, for heavy-duty truck applications as part of the new agreement which will be produced at its joint venture with Foton.

ZF claims the TraXon 2 Hybrid transmission system significantly reduces carbon emissions while retaining many of the advantages of internal combustion engine (ICE) technologies. The system is scheduled to go into commercial production in China in 2026, initially targeting the Chinese market before being rolled out in global markets.

Peter Laier, ZF board member responsible for the Commercial Vehicle Solutions Division, said in a statement: “This partnership leverages our respective resources, strengths and expertise to accelerate the development of our hybrid solution and help bring it to market quickly and cost effectively. The world premiere of the new hybrid transmission in China demonstrates ZF’s determination to empower the transformation of China’s new energy vehicles and promote the sustainable development of China’s commercial vehicle industry.”

Foton Chaiman Chang Rui added: “Foton Motor has always adhered to the development strategy of efficient and low carbon vehicles. The hybrid AMT system is a key initiative for Foton and ZF to respond to the new energy transformation of commercial vehicles. The signing of this strategic cooperation agreement not only marks the deepening of cooperation between the two parties, but also signifies that Foton will bring more diversified commercial vehicle solutions to China and even the global market, and further promote the green transformation and sustainable development of the industry.”

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In its release to the media, ZF added: “As China’s commercial vehicle market continues to undergo a profound and rapid new energy transformation, a variety of technology solutions are being developed in parallel, with hybrid technology increasingly becoming a crucial driver towards the industry’s decarbonisation efforts. With its extensive experience in developing hybrid technologies for passenger cars, ZF is able to develop viable, cost-effective hybrid technologies for commercial vehicles swiftly and efficiently.”