Joint Venture for Off-Highway Electromechanical Actuators

Bosch Rexroth and Xi'an IF Intelligent Equipment have signed an agreement to establish a joint venture focused on the development and sales of electromechanical actuators (EMA) for off-highway vehicles, targeting global markets with products designed for efficiency, scalability, and competitive cost structures.

Joint venture scope and approval status
The agreement to form the joint venture was signed in Xi'an on January 26, 2026. The establishment remains subject to approval by international antitrust authorities and relevant government agencies in China. Industrial leadership of the joint venture will be held by Bosch Rexroth.

The new entity will be headquartered in Shanghai, with production facilities located in Xi'an. It will develop its own EMA product lines and manage domestic sales through a dedicated organization, while international distribution will leverage Bosch Rexroth’s global sales network.

Market drivers and application focus
Demand for electromechanical actuators in off-highway vehicles is increasing as manufacturers seek alternatives to hydraulic systems to improve energy efficiency, controllability, and integration with electrified drivetrains. The Chinese market, in particular, is developing rapidly and is increasingly influential in global off-highway machinery supply chains.

Target application sectors include construction equipment, agricultural machinery, mining vehicles, and material handling systems. In these segments, EMAs are used for functions such as steering, braking, lifting, and implement actuation, where precise control and reduced energy losses are increasingly required.

Technical contributions of both partners
Bosch Rexroth brings experience in automation, drive systems, and global market access. The company has operated in China since 1978 and has an established presence in mobile hydraulics, electrification, and control technologies.

Xi'an IF Intelligent Equipment, a wholly owned subsidiary of Xi'an Huaou Transmission founded in 2001, contributes expertise in ball screw technology—a critical mechanical component of electromechanical actuators. Ball screws directly influence actuator efficiency, load capacity, positioning accuracy, and service life, making them a key performance determinant in EMA systems.

By combining Bosch Rexroth’s system-level integration and market reach with Xi'an IF’s component-level specialization, the joint venture aims to accelerate product development cycles while maintaining cost competitiveness.

Product development and system architecture
The joint venture will focus on the development, application engineering, and final assembly of electromechanical actuators. Planned EMA product lines will integrate motors, motor control electronics, and linear drive components into complete actuator systems optimized for mobile off-highway use.

This integrated approach supports modular product architectures that can be adapted to different machine sizes and duty cycles. It also aligns with broader trends toward electrification and software-controlled actuation in mobile machinery, where EMAs enable more direct integration with vehicle control systems.

Sales model and global reach
Responsibility for sales within the domestic Chinese market will rest with the joint venture’s own sales organization. For overseas markets, the products will be distributed through Bosch Rexroth’s established international sales channels, providing access to OEMs and system integrators across Europe, North America, and other regions.

This dual-channel approach is intended to combine local market responsiveness with global scalability, supporting both regional customization and standardized global platforms.

Strategic context
The planned joint venture reflects a broader shift in off-highway vehicle design toward electromechanical solutions that support lower emissions, improved energy efficiency, and digital control. By localizing development and production while maintaining access to global markets, the partners aim to address both cost pressures and performance requirements.

If approved, the collaboration positions Bosch Rexroth and Xi'an IF Intelligent Equipment to participate more directly in the transition from hydraulic to electromechanical actuation in mobile machinery, supporting evolving requirements for productivity, sustainability, and system integration.