German auto component major ZF Engineering is expanding its footprint in India by setting up a new facility at Chakan. The company will invest about Rs 150 crore (€20 million ) in this facility and will employ 350 people.
The plant is expected to be operational in the beginning of 2015. This facility will develop passenger car power trains and technology for commercial vehicles.
“For 30 years ZF has been present in the Indian market. In the years to come, we still see considerable potential in the Indian automotive industry. India will contribute to the growth of the ZF Group which will be strongly driven by Asia-Pacific region. India’s strong population and economic growth calls for massive infrastructure expansion. Despite the not entirely easy situation at present, the Indian economy will continue to grow over the long term. We are well prepared for that,” said Rudolf von Meister, President Asia Pacific.
In 2013, the Group generated about €3 billion in Asia-Pacific and invested about €84 million.
He added, “In accordance with the local-for-local concept, ZF wants to provide its customers products developed locally wherever possible. Equally, design-to-market considerations play an important role in this regard. Therefore, the ZF engineers from the R&D center in Pune will also be located in the new building in order to develop products specifically for the requirements of the Indian market.”
Piyush Munot, managing director, ZF India said, “The new plant is a good starting point for the further expansion of the business in India and it is a clear commitment of the ZF Group to the Indian market and its future prospects.”
Considering the poteintial of Indian passenger car market, ZF has launched its passenger car components which includes new steering and suspension components for OEM majors like Mahindra & Mahindra, Tata Motors, Ford and General Motors. The company eyes 12 per cent market share for Lemförder components in the passenger car segment by 2016-17.
