Domestic high-end automatic transmission staged a technological breakthrough
In 2009, the Chinese auto market witnessed a significant milestone as car sales surpassed six million units in the first half of the year, marking a 17.69% increase compared to the previous year. This growth has not only driven the vehicle market but also made the auto parts industry an attractive sector. However, despite this potential, Chinese companies have struggled to capture a major share of the market. According to incomplete data, foreign investment accounts for over 60% of China's auto parts market, with a dominant presence in key areas. Experts estimate that foreign firms control a large portion of the high-end components, particularly in critical technologies like automatic transmissions.
The "Car Blue Book - China Automotive Industry Development Report 2009" highlights that foreign capital almost monopolizes core automotive technologies. The situation is especially challenging for Chinese enterprises when it comes to high-end automatic transmissions, where 80% of the market is dominated by imported brands, and the remaining 20% is largely controlled by foreign joint ventures. This indicates a pressing need for breakthroughs in domestic high-end transmission technology.
Looking back, efforts to develop automatic transmissions began as early as the 1960s, with the CA 774 hydraulic automatic transmission being developed by 1975. However, due to issues like low power transmission ratios and excessive noise, it failed to meet passenger car demands. In 2002, the government launched a special project to support R&D in automatic transmissions, allocating funds for projects in Shanghai and Tianjin. Despite spending over 800 million yuan in two years, the project ultimately failed. By 2005, Geely introduced its Z series 3AT transmission, which generated industry interest, but still lagged behind international standards in terms of performance and market readiness.
It became evident that without addressing core technological gaps, China’s automatic transmission industry would struggle to make meaningful progress. However, in June 2009, a major breakthrough was achieved: China successfully tested its first high-end automatic transmission with full independent intellectual property rights—Euro-Electronics' four-speed automatic transmission. Designed for high speed, low noise, and broad applicability, it was tested at Inner Mongolia Oy-de-de-engine, China’s largest engine and transmission production base. This development filled a critical gap in China’s core component manufacturing.
Experts point out that one of the main challenges in China’s automatic transmission industry is the lack of TCU (Transmission Control Unit) technology, often referred to as the "brain" of the transmission. To address this, Euro-Idetech Engine Company partnered with Germany’s ZF to introduce advanced production lines and supporting technologies. Based on these, they focused on developing TCU technology through independent innovation, achieving world-leading capabilities. Their system uses a 32-bit TCM8 controller, offering faster processing speeds and improved performance.
In addition to core technology breakthroughs, Euro-Idetech made significant improvements in communication protocols between transmissions and engines. Through collaborations with Bosch, Delphi, and Siemens, they developed an upgraded version of the J1939 protocol. This allows seamless communication with ECU systems from these companies, enhancing compatibility and reducing matching time.
To ensure quality stability—a long-standing issue in China’s parts manufacturing—Euro-Idetech implemented over 40 SPC quality control points across the factory. They monitored more than 2,000 real-time quality parameters during the transmission manufacturing process and automated data analysis. By adopting quality inspection standards similar to those used in Europe, every product met the same technical and quality benchmarks as ZF components.
Meanwhile, other Chinese automakers like Chery, Geely, and Jiangling also made progress in automatic transmission development. Notably, Geely completed the acquisition of DSI, a move that could significantly benefit China’s core parts industry by accelerating technological advancements. These developments signal a growing momentum toward self-reliance and innovation in China’s automotive sector.
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