October 17, 2025
Foreign-funded transmission companies come to power and how Chinese companies respond
Following the major restructuring of heavy trucks on November 18, 2008, the global top 500 ZF shareholders aimed to gain control over Lijiang Gear, China’s largest bus transmission manufacturer. Meanwhile, Geely recently acquired two major players in the world’s second-largest transmission company, DSL, pushing China’s transmission market to the brink of a new era, much like how engine technology had dominated attention in previous years. As a result, Chinese and international transmission companies have become More directly competitive, especially as the global auto market faced setbacks and reorganization, making the Chinese transmission sector another focal point of competition.
**Commercial Vehicles: Compete for AMT**
Looking ahead, the Chinese automotive industry has largely agreed that Automated Manual Transmission (AMT) is the right path for commercial vehicle development. However, while the term may be the same, each company has its own approach, with varying levels of technological sophistication and implementation methods.
**Heavy Truck: A Sense of Security**
Since Weichai's independent operations, SINOCHEM has felt a lack of security in the supply chain of key components. The challenge of preventing potential disruptions in the Weichai industry chain has been a major concern for Ma Chunji in recent years. This has led CNHTC to seek greater control over its industrial chain. While engines benefit from Hangfa’s support, transmissions remain an unstable link in the heavy truck supply chain. Prior to mid-2006, over 90% of China National Heavy Duty Truck’s power distribution relied on Weichai Steyr engines and Shaanxi Gear’s twin countershaft transmissions.
However, this situation began to change after 2008. CNHTC introduced WABCO’s AMT systems into its 2009 HOWO7 model and later restructured CNOOC’s big gear division. Despite these moves, challenges remained. WABCO’s AMT is not significantly cheaper than domestic options, limiting its popularity in China’s price-sensitive heavy truck market. Technology absorption and innovation are necessary, but short-term solutions alone cannot resolve long-standing issues. Additionally, the mismatch between large gear transmissions and Steyr platforms continues to cause problems.
**WABCO: Focused on Commercial Vehicles**
Rumors of a secret supply agreement between Shouqi and WABCO were confirmed at the Shanghai Auto Show. Dr. Liu Liang of WABCO Asia Pacific did not deny the deal. Yu Sujie, a key figure in the collaboration between Sinotruk and WABCO, previously worked at WABCO before joining Sinotruk. Her role in the joint venture has been pivotal.
WABCO’s ambitions in Asia extend beyond Sinotruk. Its Qingdao plant serves as a global model for lean production and value stream management. Although most output is exported, the company is eyeing the growing Chinese market. With mature AMT technology tailored for Chinese commercial vehicles, WABCO has made notable progress—though it is not the only player with such plans.
**Eaton & ZF: Fear Not Regret**
Both Eaton and ZF entered the Chinese market over a decade ago, but their early results were limited. Eaton’s partnerships with FAW and Fast have not delivered expected outcomes. However, FAW recently showcased a 9-speed AMT, and Fast announced plans for its own AMT by mid-2009. Eaton, when questioned about its strategies, focused instead on hybrid transmissions, which have gained traction in the passenger car segment.
ZF, after entering China, aimed for local production and planned a transmission base in the Asia-Pacific region. However, past collaborations, such as with Zarbabwe, were fraught with tension. Now, as China’s commercial vehicle market grows, ZF appears increasingly eager to expand. Though ZF officials avoided confirming any new contracts, the pressure to secure a foothold is clear.
**Extend! Infiltrate!**
In China’s commercial vehicle transmission market, high market share is common—Fast holds over 80%. But as the market opens up, such dominance will inevitably decline. Companies are now looking to expand product lines and enter new markets. Fast, for example, is moving into passenger car transmissions, while others are exploring overseas opportunities.
The boundaries between truck and passenger car transmissions, as well as between commercial and passenger vehicles, are blurring. Weichai, once a leader in engines, is now expanding into transmissions through its joint ventures. Other companies, such as Zhuzhou Gear, are also emerging, aiming to become key players in the domestic transmission industry.
With more foreign and domestic players entering the scene, the competition for technology and market share intensifies. Companies like China Jifu Power are expanding their teams in anticipation of growth. As AT gradually fades out, AMT is just beginning its rise. For Chinese commercial vehicle transmission companies, mastering AMT technology remains a top priority.
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