Interview: Rapid innovation in China fuels companies' growth, says ZF Group executive

by Xinhua writers Che Yunlong, Shan Weiyi

BERLIN, Sept. 26 (Xinhua) -- Peter Laier, a senior executive of the leading German auto supplier ZF Group, said he is happy to see the high speed of innovative development in China as it will benefit the growth of foreign companies like ZF.

During an interview at an ongoing trade fair in Berlin, the member of ZF Group's Board of Management told Xinhua that they are willing to be driven by this speed, and ZF's technical expertise and localization strategy enable the company to keep pace with the innovation demands of its Chinese partners.

The 2024 International Trade Fair for Transport Technology (InnoTrans), running from Sept. 24 to 27, attracted more than 2,900 exhibitors from 59 countries and regions. This year's event is particularly significant for ZF as the company celebrates the 100th anniversary of its rail business.

Laier elaborated that ZF offers a wide range of technical products, including driveline systems, chassis, safety, and digital solutions. "We have been working in China for a long time, and we are proud of that," he added.

According to him, ZF entered the Chinese market in the 1980s, initially focusing on buses and commercial and passenger cars. A significant milestone was reached in 2014 when ZF entered the supply market of Chinese high-speed trains and metros.

The company, with operations in 31 countries, reported remarkable profits from the Chinese market in 2023. According to its 2023 financial report, ZF's sales in China reached a record high of 8.1 billion euros (9 billion U.S. dollars), marking a 5.2 percent year-on-year increase. Its business in the Asia-Pacific region, led by the Chinese market, accounted for around one-quarter of the group's total.

ZF's booth at InnoTrans 2024 showcases its "connected rail system" solution, which employs sensors mounted on train wheels to monitor the rail network in real time.

At the ZF's booth, Laier demonstrated how a sensor responds to a simulated rail anomaly and sends signals to the control center. In addition, he told Xinhua that autonomous driving is another key focus, on which the group has cooperation with its Chinese partners.

"We will continuously invest in China further, focusing on localization of R&D as well as local production and new technologies," Laier said, adding that China's economic growth presents broad opportunities for ZF's expansion.

"The success of our activities in China is based on a 'local for local' approach in engineering and manufacturing," he noted.

Laier praised China for its significant progress in transforming its transportation sector to electrification and sustainability, noting that more and more Chinese companies are advancing in technology leadership.

ZF supports electric and zero-emission vehicles in China with technology and product support across various segments, working closely with its local partners. Laier underscored ZF's announcement of several strategic partnerships with Chinese customers last week at the IAA Transportation 2024 exhibition in Hanover.

He forecasted that ZF would exceed expectations in its collaboration with Chinese partners in the coming years, particularly in areas like rail technology, public transportation and commercial vehicles. He anticipates this growth will be driven by cooperation in the Chinese domestic market and the increasing demand for exports from Chinese enterprises.