ZF Group, a global leader in auto components manufacturing, is set to expand its operations in India with a new construction equipment facility at its Coimbatore campus in Tamil Nadu. The facility, slated for inauguration by June 2025, will focus on component production and broadening product offerings in the rapidly growing construction equipment sector.
“In addition to our automotive business, we are expanding into the construction equipment segment in India. This reflects our commitment to the future, as the construction industry is the only sector in India projected to grow by 100% in the next five years,” said Akash Passey, President, ZF Group India, at the Bharat Mobility Expo in New Delhi.
Expansion & Investment Plans
While specific investment details will be disclosed later, ZF confirmed that this new unit will be more than just a parts manufacturing facility—it will play a crucial role in expanding ZF’s construction machinery offerings.
Additionally, ZF is scaling up wind gearbox production at its Coimbatore plant, increasing capacity from 9 GW to 12 GW with a €50 million investment, expected to be completed by end of 2025.
Navigating Global Challenges & India’s Growth Potential
Passey acknowledged that 2024 has been a challenging year for the company. The European automotive sector downturn and competition from lower-priced products from the East have created market pressures.
However, India remains a key growth market.
“For the first time, I hear globally that India is the place to invest. While we are a giant in the making, we aren’t there yet. Achieving global recognition is the next step,” Passey added.
ZF’s India revenue is estimated to have surpassed ₹10,000 crore in 2024, though final figures are awaited. Looking ahead, 2025 growth is expected to remain flat, but ZF sees this as a stability achievement, considering global market conditions.
Innovation & Future Technologies
ZF continues to lead in automotive innovations, showcasing advancements in electric systems, safety, ADAS, and braking solutions for commercial and passenger vehicles.
Among its key innovations at the Expo was the ZF Easy Turn Axle Concept, which enables wheel turn angles of up to 80 degrees, compared to the traditional 40 degrees.
“This game-changing technology allows sharp U-turns without reversing, making it ideal for small commercial vehicles like delivery vans. In congested urban areas with limited unloading space, improved maneuverability can significantly enhance efficiency,” Passey explained.
ZF’s Global Strength Supporting Indian OEMs
As Indian OEMs aim to export vehicles globally, ZF’s global aftermarket support provides a strategic advantage.
“Our technologies are competitive and cost-effective, recognized by global players. Indian OEMs struggle with international aftermarket support, and ZF’s worldwide presence ensures seamless service for our customers,” Passey emphasized.
With a strong focus on India’s infrastructure boom, sustainability, and cutting-edge technology, ZF Group is positioning itself as a key partner for India’s automotive and construction equipment growth.