ZF India, the German auto component maker that gave Tata Nano its most recent electric power system, is betting big on the Indian market. The company, which has been present in India for the past 30 years, is further expanding its operations by starting a new factory at Chakan near Pune earmarking an investment of Rs 150 crore.
Following the proposed expansion plans, the company will have 10 plants across India. The new facility will be operational in 2015 and would combine its car powertrain, commercial vehicle technology and ZF services under on roof. The new facility will develop power trains for the passenger cars as well as components for the commercial vehicles and will employ 350 people.
In 2013, the group generated about $3 billion revenue in Asia-Pacific, while India contributed about 4-5% of the overall revenues from the region. Out of the total business in India, commercial vehicle (CV) segment contributes about 50% to its overall revenues, with passenger cars accounting for 40% and 10% coming from the industrial segment.
The company, which supplies components to premium car manufacturers, is looking to increase its reach in the Indian mass market passenger vehicles segment.
The company is supplying the power steering unit to Tata Motors' latest Nano Twist.
Talking about the Indian market, Rudi von Meister, ZF's President of Asia-Pacific said, "We have great potential here. There are few markets which are in a position to expand and grow their indigenous auto industry. The next phase of innovations are expected to come from markets like India."
"Auto makers and component suppliers like us are beginning to come out from the traditional comfort offices. What's exciting and challenging for us are the opportunities that the Indian auto makers are going to present to us," he added.