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ZF CEO calls China 'center of gravity' for electric trucks
Car supplier taps China’s e-truck boom as Europe lags
(ZF Friedrichshafen)
Key Takeaways:
- ZF CEO Mathias Miedreich said China has become the center of gravity for electric-truck technology as electric trucks reach about 30% market share there.
- ZF said China’s adoption rate far exceeds Europe’s low single-digit share, increasing pressure on Western manufacturers as Chinese truckmakers expand exports.
- ZF plans to pursue China’s electric-truck growth while supporting hybrid technology in Europe as it navigates a slower transition to zero-emission vehicles.
China’s electric truck market is pulling further ahead of Europe, putting growing pressure on Western manufacturers, according to German parts maker ZF Friedrichshafen AG.
Electric trucks already account for about 30% of the Chinese market and ZF expects that share to rise toward 50%, CEO Mathias Miedreich told reporters Sept. 9. Europe, by comparison, remains in the low single digits and the pace of adoption is uncertain, he added. Key competitors include China’s BYD Co.’s and Geely’s truck divisions as well as startups like Windrose Technology.
“Is the center of gravity for electric-drive technology in China? The answer is clearly yes,” Miedreich said. “That’s where the action is and where the technology is being developed.”
That shift will be on display at next week’s IAA Transportation show in Hanover, where two of China’s three largest truck makers are expected to present vehicles equipped with ZF electric powertrains, according to Andreas Moser, who heads the supplier’s commercial-vehicle business. Chinese manufacturers are increasingly looking to export, particularly to northern Europe, increasing pressure on Western rivals, Moser said.
ZF expects most trucks sold in China to ultimately use electric drives from domestic suppliers, though there’s an opportunity for the company to work with Chinese manufacturers as they expand overseas. This would also lower costs for components it produces in Germany and generate cash for its European operations, according to the CEO.
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Overall, the maker of transmissions systems and electric drivetrains is calling for more support for hybrid drive technology after incurring heavy losses on an earlier bet on electric passenger-car drives. A slower-than-expected market ramp-up left several projects unprofitable, prompting ZF to terminate some programs early and take a roughly 1.6 billion euros ($1.9 billion) charge last year. The division is undergoing a restructuring that is expected to eliminate thousands of jobs.
The firm is now aiming to hedge against the uncertainty about the speed of a transition to zero-emission vehicles by participating in China’s much faster electric truck boom while keeping hybrid technology for a European transition it expects to take considerably longer.
