ZF Group’s aggressive expansion in India underscores a broader trend, and global automotive majors are increasingly turning to India not just as a low-cost manufacturing base but as a strategic export and engineering hub. With 19 manufacturing facilities already operational and plans to double production lines over the next five years, ZF is aligning itself with India’s rising capabilities in precision engineering, cost-efficiency, and supply chain resilience.
Globally, ZF has 161 plants, though its operations in India are now especially important. Momentum from ‘Make in India’ and other government plans is leading to more foreign investment in the country’s auto component industry. Building a new plant every year shows that ZF is sure India can compete globally in the industry.
“We are now actually inaugurating one plant per year. But we have, in several locations here in India, the opportunity to grow the facility itself. So (for instance), in Oragadam (in Chennai), we can mirror it and double it… And then we have to investigate further where we are going,” said Dr. Peter Laier, Member of the ZF Group Board of Management.
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The company is betting big on the UK-India Free Trade Agreement and ongoing EU-India FTA talks to boost exports. This move also reflects the industry shift toward regionalized supply chains. As Andreas Moser, Executive VP, ZF Group, noted, “Localization is about much more than manufacturing: it also requires authority, responsiveness, and product-level understanding at the local level.”
ZF’s India strategy not only mirrors global manufacturing realignment but also strengthens India’s positioning as a high-value player in the global automotive supply chain.
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