ZF Group targets €2 billion annual sourcing by 2030

G Balachandar Updated - August 27, 2024 at 09:36 PM.
Peter Laier, Member of the Board of Management at ZF Group

ZF Group, a leading global auto parts supplier, expects significant growth in both sourcing and revenue over the next six years, encompassing all its business sectors, including mobility and wind energy.

The group expects its sourcing of parts, both for local and global requirements, to reach an annual value of about €2 billion by 2030, and the Group’s total revenue in India is expected to increase to €3 billion, up from €1.1 billion in 2023.

Peter Laier, Member of the Board of Management at ZF Group, explained, “With India’s transportation needs rising, we anticipate more vehicles on the road, leading to higher value per vehicle. In wind energy, the Indian government’s substantial investments in sustainable energy create significant growth opportunities for us. We expect growth across all three pillars of our business. Our strong belief in India as a market drives our substantial investment here.”

The Group aims to increase its sales in India to €3 billion by around 2030-2032. This increase will be supported by growth in its three core areas: commercial vehicles, wind transmissions, and other technologies.

Laier noted, “ZF is already a market leader in many of our product areas. For wind transmissions, we’ve made significant investments and hold a strong market share. There is still considerable room for growth in other business areas, especially as we have the technologies India needs.”

ZF is prepared to meet emerging safety regulations and new technology demands, such as mandatory ESP installations and electric parking brakes, while expecting growth in the passenger car segment. In the commercial vehicle sector, growth will be driven by regulatory changes and market expansion.

Akash Passey, President of ZF Group in India, highlighted progress in electromobility, particularly in two-wheelers, three-wheelers, and buses. Although adoption is slower for passenger cars and trucks, it is gradually increasing.

The Group is also monitoring developments in technologies such as ethanol, biofuels, and hydrogen. The Indian government’s hydrogen policy, which extends through 2030, involves investments in these emerging technologies. However, ZF’s primary focus remains on internal combustion engines and electromobility.

From a supplier’s perspective, ZF supports customers through two main pillars: providing transmissions for combustion engines (diesel or hydrogen) and offering a modular system for battery-electric and fuel-cell technologies, including electric motors, transmissions, and inverters.

ZF Group operates 18 manufacturing units and 10 engineering centres across India, with 14 entities (including one joint venture) and 16,000 employees.

Published on August 27, 2024 12:18

This is a Premium article available exclusively to our subscribers.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.

Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

You have reached your free article limit.
Subscribe now to and get well-researched and unbiased insights on the Stock market, Economy, Commodities and more...

TheHindu Businessline operates by its editorial values to provide you quality journalism.

This is your last free article.