German tier 1 supplier ZF is on an aggressive roadmap, after successfully navigating the Covid-19 pandemic, the company has been able to see sustainable growth.
In a virtual global press conference held by ZF, the company management said that just after 6 months after launching its new Commercial Vehicle Solutions (CVS) division it has garnered substantial orders for its latest technologies, which shows that customers are reacting positively to the new integrated portfolio. ZF revealed that it has been awarded significant volume contracts by multiple major car manufacturers that will launch in all major regions as of 2023.
India is a key area of interest for the company globally.
Wolf-Henning Scheider, CEO of ZF Friedrichshafen said, “With the acquisition of Wabco and the new CV division we are the largest commercial vehicle supplier globally. The CV product portfolio contributes 18% to our total sales. With internationally strong position in US, India and China, we are also tapping new markets.”
When queried about the company’s plans for the near- and medium-term. Wilhelm Rehm, Commercial Vehicle Solutions, Industrial Technology Materials Management, ZF responded, “When we look at India, we have strengthened our footprint through acquisition of Wabco. We are making significant investment towards our plant in Oregadam for the next 2 years. The target is to reach 3 billion euros sales (Rs 24,000 crore) in the near-term and double the sales of our CV products in the next 5 years.”
Scheider reiterated that the company has been significantly investing in India. Just like the global scenario, the trend of electrification, safety functions though automated systems will be seen in India. “For new cars we see a strong trend towards high-safety standards, which started with seatbelts and now is moving towards automated braking and camera. The demand for comfortable driving, reduce CO2 and safety.”
Responding to a question about new acquisitions or partnerships in India. Scheider said that the company has a history of acquiring various companies globally depending on the technology, product and integrating it, the skillsets to offer superior solutions. “We may see further partnerships that have advanced capabilities in the backend operation (read IT) where India is strong in the area. But nothing concrete to talk about.”