BorgWarner has announced it has agreed to form a joint venture with Shaanxi Fast Auto Drive Group, a China-based commercial vehicle (CV) parts supplier specialising in transmission and drivetrain systems.

The collaboration will focus on drivetrain products for the electrified commercial vehicle sector.

Stefan Demmerle, President and General Manager, BorgWarner PowerDrive Systems said: “By jointly working on a high-voltage inverter application for high efficiency vehicles such as heavy-duty trucks and off-road vehicles, this joint venture will support our business growth for power electronics in the electrified commercial vehicle market.”

Xuyao Ma, Chairman of FAST Group said: “With electrification, connectivity, autonomous driving, and shared mobility transforming the automotive industry in China, the penetration rate of CV in the new energy sector is growing rapidly. The joint venture will increase our customer value by providing state-of-the-art inverter product and propulsion solutions in the commercial vehicle market.”

BorgWarner says this agreement will enable it to expand its product portfolio for battery electric and hybrid commercial vehicles.

Subject to regulatory approval, the firm expects to establish the joint venture in the first quarter of 2024.