German automotive supplier ZF increases focus on China: board member

BERLIN, Dec. 11 (Xinhua) -- German automotive supplier ZF Friedrichshafen (ZF) is increasing its focus on China. By 2030, the company is seeking to generate 30 percent of its global sales there, up from 18 percent last year, Board member Stephan von Schuckmann said in an interview.

"Compared to other regions of the world, there is a very positive dynamic in China when it comes to electric vehicles," Von Schuckmann told WirtschaftsWoche, a German weekly business news magazine, on Saturday, calling the Chinese market "a real frontrunner."

China has established itself as the "fastest in new technologies," the ZF manager added. With regard to electric cars, China is leading in the range of vehicles available and has a "high acceptance of the population to drive electric."

Customers in China are demanding much shorter developing times. "In order to keep up, ZF had to adapt and change quickly," Von Schuckmann said, adding that the company is developing many technologies locally in China.

Over the past five years, ZF has almost doubled its investments in research and development in the Asia-Pacific region to 380 million euros (410.4 million U.S. dollars) in 2022. Since entering the market in 1981, China has become an important location for global product launches for ZF.

In November, the German automotive supplier presented its new all-electric brake system "Brake-by-Wire" in Shanghai. The system, which was developed in China, the United States and Germany, works without a hydraulic system or brake fluid.

According to Von Schuckmann, a Chinese carmaker that has not been named was particularly quick and intends to launch the technology in a new model in the coming months. "Chinese manufacturers are very tech-savvy and are using the latest technologies with courage and speed to differentiate themselves," the manager said.

He said he expected Chinese car manufacturers and suppliers to start producing in Europe soon. "You have to take this development very seriously and adapt in order to survive," he said, noting that competition is an opportunity to take technology to the next level.

At the same time, the ZF board member said he was concerned about his company's locations in Germany. "If we don't succeed in making Germany competitive, we will be at a disadvantage as a company with many locations in Germany."

Higher energy costs in particular have put Germany at a disadvantage in international competition. According to a recent study by the German Economic Institute (IW) and Frontier Economics, this could lead to a welfare loss of up to 4.5 percent over the next 15 years.

Two out of three companies in Germany have already relocated parts of their value creation abroad, according to a survey published by consulting firm Deloitte last month.