(Yicai Global) March 25 -- ZF Friedrichshafen, one of the world's largest parts suppliers to the car industry, will gradually start to produce whole products in China and will build up a local research and development team in China to support the goal.

The products include a new generation of the eight-speed automatic transmission system, the Friedrichshafen-based firm said in a strategy document. The company aims to start mass-production of the set at its Shanghai facility, making it the first foreign auto parts supplier to make such products in the country.

Dr. Holger Klein, a board member at ZF, has been based in Shanghai since January, which is also a first for an overseas car parts maker.

China's per capita car ownership is still low, and the country will remain the world's largest auto market with great potential, especially in new energy vehicles, Klein said in an interview with Yicai Global, adding that ZF will not only continue to invest in China but also develop products that meet the needs of the local market.

Many of its customers are self-owned brands and new carmakers from China and ZF has established R&D centers and factories in the country, including nearly 40 plants spanning 24 cities, along with two regional headquarters and two engineering and technology centers.

As a large-scale auto part maker capable of bearing failure risks, ZF is willing to cooperate with some start-ups that share the same development direction as the company, Klein said.

The company unveiled an electric vehicle prototype for the first time in the Asia-Pacific region on March 22, which is still under development and is named "Next Generation Mobility."

ZF's revenue in APAC made up 21 percent of its global total in 2017, while its earnings in China accounted for 19 percent.

Editor: William Clegg