German auto component major ZF Engineering today inaugurated its manufacturing plant in Chakan with an investment of Rs 150 crore. The plant will have a total capacity of producing one million units every year.
Currently, it will utilise only 20 per cent of the total capacity. It will supply components ZF's India customers as well as some of the global clients also.
The new facility further strengthens ZF’s role as a global player, and its expansion in a growth region like India. ZF has also increased localisation in high tech products in India.
Also Read
Wilhelm Rehm, Board Member of ZF Friedrichshafen AG and global head of material management said, "This multi-product facility will house our car power train technology and commercial vehicle technology divisions as well as ZF Services under the same roof. The synergies from this consolidation will enable ZF to improve efficiencies and help us provide a compelling value proposition to our customers. Today, Asia-Pacific is the most important market for ZF after Europe and North America. After China, India is the second-largest market in the region and ZF India caters automotive, off-highway, wind power and marine industries."
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.
Piyush Munot, India Managing Director, ZF Group operations said, "Product portfolio is now expanded through passenger car clutch systems designed to meet demanding driving conditions in India. ZF strategy will grow from bringing advanced tech to India, to develop products in India for India."
