"ZF Group to Open New Facility in Coimbatore for Construction Equipment Expansion.

ZF Group, a global leader in automotive components, has announced plans to open a new facility at its Coimbatore campus in Tamil Nadu, marking a significant expansion in India’s construction equipment sector. The new unit, set to be inaugurated by June 2025, will produce components to support the growing demand in this industry, which is projected to double in size over the next five years.

Speaking at the Bharat Mobility Expo in New Delhi, Akash Passey, President of ZF Group India, stated, "In addition to our automotive business, we are expanding operations in the construction equipment segment in India. This new facility is a reflection of our commitment to future growth, as construction equipment is the only sector in India projected to experience 100% growth in the next five years."

Details of the investment and the broader expansion plans will be shared later, but Passey emphasized that the Coimbatore facility will not only focus on parts production but will also see a broadening of ZF’s product offerings.

In parallel, ZF is increasing its wind gearbox production capacity at the same Coimbatore campus, with an investment of €50 million aimed at boosting output from 9 GW to 12 GW by the end of 2025.

Reflecting on the challenges of 2024, Passey noted that the European automotive sector is facing a downturn, compounded by intense price competition from Eastern markets. Despite these challenges, he expressed optimism about India’s potential, citing growing global interest in investing in the country. "India is now recognized as a key investment destination, and while we’re a giant in the making, our next step is global recognition," he said.

ZF’s revenue in India is estimated to have exceeded ₹10,000 crore in 2024, though official figures are pending. After experiencing strong growth in recent years, the company expects stable, flat growth in 2025. Passey stated, "While flat growth isn’t ideal, maintaining stability amid global downturns would still be an achievement."

ZF remains dedicated to advancing cutting-edge technologies in electric systems, safety, ADAS, and braking solutions, which are highly competitive and cost-effective. Passey emphasized the company’s global presence as a key advantage for Indian OEMs, especially those looking to expand their exports, noting that ZF’s comprehensive aftermarket support ensures reliability for customers worldwide.

Among the notable innovations showcased at the Expo was ZF's Easy Turn Axle Concept, which allows for significantly higher wheel turn angles, improving maneuverability for small commercial vehicles such as delivery vans. The new axle can make sharp U-turns without reversing, enhancing efficiency in urban environments where unloading space is often limited.

HBL