ZF Plans To Achieve 3 Billion Euro Revenue From The Indian Market By 2030: Report

German auto component and driveline provider, ZF, reportedly plans to make its India division a 3 billion Euro company, by 2030. Recently, the company's Member of the Board responsible for Asia Pacific and India, Holger Klein told ET Auto that ZF is aiming to establish India as a region with decision-making power to drive the business. To that effect, the company wants to achieve a revenue of 3 billion euros, nearly Rs. 26,500 crore, out of which 2 billion euros or over Rs. 17,600 crore will come from sourcing volumes alone.

To achieve its goal, among several other changes, the company will also integrate its commercial vehicle business with the recently acquired Wabco into one division named Commercial Vehicle Systems. Kaniappan, MD, Wabco India has said that the company will switch its branding to ZF in January 2022. This move is in line with the company's earlier announcement, from June 2021, when ZF said that it will consolidate its business domains to drive growth in the next decade. ZF acquired Webco back in 2020 for 7 billion euros, making it the second-largest auto supplier globally after Bosch.

Dr Holger Klein, ZF Member of the Board responsible for Asia Pacific and India said ZF is aiming to establish India as a region with decision-making power to drive the business

In June, the company had also announced its plan to invest around 200 million Euros, nearly Rs. 1800 crore, in its India business, over the next few years. The company has said it's working on a refreshed strategy and has an intensive plan to rapidly grow its business in India. The investment will aid this growth through product launches, manufacturing and engineering footprint expansions, hiring and other developments across all business domains.

Also Read: ZF Plans To Invest Nearly Rs. 1800 Crore In India Over The Next Few Years

In addition to manufacturing, ZF will also focus on the software side of the vehicle business. Sighting potential data sources, Klein said that the software share in the vehicle will continue to increase, and more and more components will be equipped with sensors. He said, "On the pure software side we started to sell 2 years ago to the first Chinese OEM, the vehicle motion control software in an ICE model and this is picking up fast. Though software is not yet sizable, it will become more and more a trend."

ZF says barring some structural components the rest of all components will be driven by electronics and software

The company's India head, Suresh KV says that barring some structural components the rest of all components will be driven by electronics and software. "80 to 90 per cent of cars will be driven by electronics, hardly any component will remain purely mechanical," he added. ZF has also been developing a range of e-mobility solutions like - motors, power electronics, inverters, reduction gears, and the company says that the development of such systems is reaching quite a sizable figure. Earlier in 2021, ZF also formed an Electrified Powertrain Technology Division that combines conventional, hybrid and purely electric drive technologies for passenger cars.

Source: ET Auto