ZF, a global leader in advanced technology and products, is setting its sights on India as a key market for future growth. Dr. Peter Laier, Member of the Board of Management for CVS ZF, provided insights into ZF’s growth plans in India, highlighting the steady expansion of commercial vehicle systems and the company’s strategic partnerships in the country. Rajesh Rajgor writes about how with a strong emphasis on localisation, ZF aims to harness India’s potential as both a domestic market and a global manufacturing hub
ZF is a global technology company supplying systems for passenger cars, commercial vehicles and industrial technology, enabling the next generation of mobility. ZF allows vehicles to see, think and act. In the four technology domains of vehicle motion control, integrated safety, automated driving and electric mobility, ZF offers comprehensive product and software solutions for established vehicle manufacturers and newly emerging transport and mobility service providers. ZF electrifies a wide range of vehicle types. With its products, the company contributes to reducing emissions, protecting the climate and enhancing safe mobility.
Expanding Commercial Vehicle Systems
According to Dr. Peter Laier, Member of the Board of Management for CVS ZF, “ZF has experienced steady growth in India’s commercial vehicle systems market in the previous year, and the company aims to build on this success in the current year. The growth is driven by two main factors: the overall increase in commercial vehicle production rates and the rising demand for advanced features and technologies due to new legislations and customer preferences.” ZF is capitalising on new legislations such as the introduction of electronic stability control (ESC) to offer enhanced safety features in commercial vehicles. Additionally, customer demands for features like automated manual transmission (AMT) have led to an increased content per vehicle, driving sales growth for ZF.
Strategic Investments and Partnerships
ZF’s joint venture with Rane TRW Steering Systems from the Rane Group has been a significant step in expanding its presence in India. Dr. Laier clarified that “ZF has already increased its stake in the joint venture to 51% and has plans to further develop this partnership. ZF’s focus in the joint venture lies in steering solutions for commercial vehicles with technologies like talk overlay steering playing a crucial role. By leveraging this collaboration, ZF aims to support the evolving needs of commercial vehicle manufacturers in India.” Recognising India’s potential as a hub for wind equipment manufacturing, Dr. Laier highlighted ZF’s commitment to the Indian market. “The company intends to utilise India as both a local supply base and a production location for global requirements,” he said.
ZF has already established a strong manufacturing presence in Coimbatore and plans to invest further in manufacturing capacity for the wind business. By tapping into India’s skilled workforce and favourable market conditions, ZF aims to strengthen its position in the wind energy sector. Furthermore, India’s rapid economic growth and ambitious development plans have caught the attention of multinational companies like ZF. Dr. Laier emphasised: “India’s expanding GDP makes it a prime region for future growth opportunities. Moreover, the country’s ongoing industry transformation further enhances its attractiveness for investment. ZF believes that India’s market offers significant potential, both for domestic growth and as a hub for serving other global locations.”
Investment in Engineering and Manufacturing
ZF views India as a crucial destination for engineering activities and has already established engineering centres in the country. These centres leverage the highly skilled workforce to support global projects, particularly in the areas of passenger cars and commercial vehicles. ZF has successfully developed technologies for safety systems, such as brakes and steering, in its Indian engineering centres. Additionally, ZF sees India as a valuable manufacturing and sourcing base, not only for the local market but also for other global markets. The company aims to develop its activities in India, entrusting full project development and responsibilities to its India research and development centres. ZF has plans to adapt wind energy solutions to cater to the specific needs of the Indian market.
Localisation Efforts and Export Strategy
ZF has been steadily increasing its localisation efforts in India. While the level of localisation varies across different product categories, ZF aims to achieve full project development in India for all areas. In the commercial vehicle segment, ZF has already achieved full development of axles and technologies in India. The company also provides connectivity solutions to Indian commercial vehicle original equipment manufacturers (OEMs) using its Indian team’s expertise.
“ZF’s commitment to India extends beyond meeting domestic demands. The company has been exporting products from India to various countries, and it plans to expand its export capabilities significantly. With India as a manufacturing and sourcing hub, ZF targets material sourcing worth Euro 2 billion from India by 2030 to support its global product portfolio,” indicated Dr. Laier.
Future Investments and Growth Expectations
Dr. Laier confirmed ZF’s plans for future investments in India without disclosing specific figures. The company’s commitment to expanding its manufacturing capacity in the Coimbatore plant indicates a positive outlook for growth in India’s wind energy market. Moreover, ZF’s focus on developing engineering centres, investing in testing facilities and strengthening research and development capabilities showcases its long-term commitment to the Indian market. ZF’s strategic focus on India highlights its recognition of the country’s economic potential and growing importance in the global market. Through its expansion in commercial vehicle systems, strategic partnerships and investments in wind energy, ZF aims to harness India’s growth opportunities. As such, ZF is poised to contribute significantly to India’s industrial transformation and reinforce its position as a key player in the country’s automotive and renewable energy sectors.