The forklift industry faces a new round of technological revolution

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The forklift industry is undergoing a new wave of technological transformation — KDS has officially announced the upcoming release of its third-generation forklift drive technology.

Over the past few years, China's industrial vehicle market has grown at an impressive rate of nearly 30% annually. This massive market has attracted global forklift manufacturers, and today, the top ten forklift brands in the world are all present in China. As the forklift industry continues to expand, the heart of the forklift — its powertrain — has become a focal point of attention. KDS, a Sino-US joint venture based in the Pearl River Delta, has emerged as a standout player in the forklift parts industry. To gain deeper insight, we sat down with KDS’s technical leader, President KC, Technical Director Robin, and Gao Apeng, the chief designer at LVAC, who shared their vision on the next big step in forklift technology.

The shift toward electric vehicle innovation is gaining momentum. While fuel-powered forklifts still dominate the market, the growing emphasis on sustainability has led many manufacturers to develop "eco-friendly, energy-efficient, and high-performance" electric models. These electric forklifts are now making waves in the material handling sector, often outperforming their fuel counterparts in terms of efficiency and cost-effectiveness.

Gao Apeng, an engineer from KDS responsible for motor development, explained that the motor is the core component of any forklift, directly impacting its performance and the overall quality of the product. He outlined the evolution of forklift drive systems: the first generation was DC electric drive, followed by low-voltage AC drive, and now the third generation is permanent magnet AC drive. The first generation marked the transition from fuel to electric, while the second generation brought improvements like reduced maintenance and higher efficiency. The third generation, however, represents a true breakthrough, offering even greater efficiency, longer battery life, and more power — features that are expected to shape the future of the industry.

Currently, direct-AC technology leads the market, but the third-generation permanent magnet AC drive is still in development and testing, primarily for small forklifts. Industry experts predict it will take 5–10 years before this technology becomes widely adopted globally. In China, where the forklift industry is growing rapidly, the transition could happen faster.

KDS has been a pioneer in the field since its establishment in 2002. From introducing DC traction motors in 2004 to developing low-voltage AC motors in 2002, the company has consistently pushed the boundaries of innovation. Their efforts have earned them a strong reputation both domestically and internationally, with major clients such as EZGO, Clubcar, and Hangcha relying on KDS for high-quality power solutions.

In 2007, KDS made headlines when it revealed that it had entered the testing phase of its third-generation permanent magnet AC drive system. This groundbreaking technology, developed in collaboration with its parent company Kinetek Group, is seen as a game-changer for the future of forklifts. According to KDS Technical Director Robin, the company is well-positioned to lead this transition due to its advanced R&D capabilities, access to rare earth materials in China, and long-term investment in motor and control technologies.

KDS President KC emphasized that being ahead of the curve gives the company a significant competitive edge. With its fifth year of rapid growth, KDS has already established itself as a leader in the forklift power system industry, continuously raising the bar for performance and innovation. The upcoming third-generation technology is set to further solidify KDS’s position as a key player in the global forklift market.


KDS President - KC

Left: Gao Apeng, LVAC Design Engineer; Right: Robin, KDS Technical Director

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