ZF Group, a global leader in automotive components, has announced plans to open a new production unit at its Coimbatore site in Tamil Nadu. The facility will manufacture parts for the construction equipment industry, marking ZF’s expansion into this growing sector in India.
Akash Passey, President of ZF Group India, revealed the plans at the Bharat Mobility Expo in New Delhi. “Alongside our automotive business, we are entering the construction equipment market in India. The new facility in Coimbatore is expected to be operational by June this year,” he said. Passey highlighted the sector’s potential, noting that it is projected to double in size over the next five years.
While specific investment details were not disclosed, Passey emphasized that the facility will not only produce parts but also expand ZF’s product offerings. “This is more than just a parts facility; we are enhancing our product range to meet market demands,” he added.
In addition to the construction equipment unit, ZF is also expanding its wind gearbox production at the Coimbatore campus. With a €50 million investment, the company aims to increase its production capacity from 9 GW to 12 GW. This expansion is expected to be completed by the end of 2025.
Challenges and Opportunities in 2024
Reflecting on ZF’s performance in 2024, Passey described the year as challenging. “The European automotive market is facing a downturn, creating significant pressure. Additionally, competition from lower-priced products from the East, which often meet similar standards, has intensified,” he explained.
Despite these challenges, India remains a key growth market for ZF. “For the first time, I am hearing globally that India is the place to invest. While we are on the path to becoming a giant, global recognition is the next milestone,” Passey noted.
ZF’s revenue in India is estimated to have crossed ₹10,000 crore in 2024, though final figures are still pending. After strong growth in recent years, the company anticipates more stable growth in 2025. “Flat growth may not be ideal, but maintaining stability amid global challenges would be a significant achievement,” Passey said.
Focus on Advanced Technologies
ZF continues to prioritize innovation in electric systems, safety, advanced driver-assistance systems (ADAS), and braking solutions for both commercial and passenger vehicles. “Our technologies are competitive and cost-effective, which is recognized by global players. Indian OEMs, especially those looking to export vehicles, face challenges with aftermarket support. ZF’s global presence ensures they have reliable service,” Passey explained.
The new Coimbatore facility and the expansion of wind gearbox production underscore ZF’s commitment to strengthening its footprint in India while addressing global market challenges.
