Auto Component Maker ZF Might Set Up R&D Centre in India

In May 2015, German Auto-component manufacturer ZF acquired TRW for $13.5 billion. This led to ZF becoming the world's 3rd largest auto components manufacturer. But the sweet part was the fact that ZF now had access to TRW's technology and its global reach. Traditionally, TRW has been a primary developer and producer of active and passive safety systems in vehicles and has an established presence in more than 20 countries. It has 22 technical centres and 13 test tracks in all of its major markets.

The TRW business is a separate division within ZF. 13 months after ZF acquired TRW; it enjoys a greater range of expertise and financial success. The total sales in 2015 clocked €29.2 billion. The company is now actively present in over 40 countries and has over 1.38 lakh employees working. The company has invested close to €1.38 billion in research and development.

(ZF might set up an R&D Centre in India, in the near future)

We were invited by ZF to visit its facility in Koblenz, Germany and happily we accepted the same. The Koblenz plant has been operational since 1962. It basically manufactures all components related to braking and steering systems. Some of the braking components that are manufactured here are brake boosters, calipers, master cylinders, ABS systems and the electronics required for installing Electronic Stability Control. Apart from that, the plant also has a strong focus on manufacturing safety devices for car occupants. After the acquisition, all the TRW plants follow only B2B manufacturing and has discontinued its after sales service. The Volkswagen Group is the foremost customer for ZF and its components.

The company has its headquarters in Friedrichshafen along with an R&D Centre. Shanghai and Detroit have a ZF R&D centre each. While there was no confirmation, but from what we gathered, ZF might set up an R&D centre in India as well. The reason being that after Europe, the Asia-Pacific region is the biggest market for ZF, contributing to 22 per cent of its global sales and India will be playing a very important role in that as well.

ZF will be delivering new technologies such as an electric parking brake unit, which is also being manufactured at its plant in Pune. We have been told that ZF is already looking to manufacture more and more safety components locally as the automobile industry in India is seeing a growth and Pune being a hub for automotive manufacturers, it makes perfect sense.