India Emerges as ZF’s Aftermarket Powerhouse Amid European Slowdown

ZF Group, a global leader in automotive technology and the second-largest aftermarket manufacturer globally is targeting double-digit growth in its aftermarket business in India in the next couple of years. This target reflects India's rising importance as a critical growth driver for the company, particularly amidst a slowdown observed in traditional markets such as Europe. The move is poised to capitalize on India's rapidly expanding vehicle population and its evolving mobility landscape, cementing the nation's role as a  "aftermarket center of gravity" for the company.

"If you look at the growth that we have in the vehicle park in India, it's one of the biggest growth that we have globally," stated Andre Scholle, VP and Head of Region for India, Turkiye, MEA, and CIS countries. Scholle emphasized that "The growth of the aftermarket however in India needs to be bigger than that." This sentiment aligns with industry projections from ACMA, which foresee India's automotive aftermarket expanding from approximately $10 billion until 2023 to over $14 billion by 2028.

ZF's aftermarket strategy in India is tailored for three key segments: commercial vehicles, passenger cars, and construction equipment. In the commercial vehicle (CV) segment, ZF already holds a formidable position with a market share exceeding 70% for local products. Despite this high market share, the aftermarket business in CVs currently constitutes a smaller portion, around 15-20% of ZF's overall aftermarket sales, a figure the company is actively working to increase. ZF is also intensifying its focus on Light Commercial Vehicles (LCVs).

For the passenger vehicle segment, ZF acknowledges a comparatively smaller aftermarket presence, especially when contrasted with its strong European OEM legacy. A significant strategic objective is to elevate the passenger car aftermarket to become a double-digit portion of their business within the next few years. To achieve this, ZF plans to expand its product range and is exploring local production of key product portfolios in India, recognizing the need to broaden its reach beyond its historical supply to German brands in the Indian market. 

The construction equipment segment is identified by ZF as a critical and rapidly growing area, intrinsically linked to India's substantial infrastructure development initiatives. The industry's volume is projected to nearly double in the next five years, presenting a significant opportunity for aftermarket growth. To capitalize on this, ZF has strategically established a factory in India specifically for construction equipment, aiming to substantially ramp up for local needs. Within this segment, ZF's focus is primarily on large aggregates such as axles and gearboxes, among others. 

Globally, ZF Group reported sales of €41.4 billion in fiscal year 2024 and employs over 161,600 people worldwide across 161 production locations in 30 countries. In India, ZF's presence spans over six decades, featuring 18 manufacturing locations and operations through 14 entities, including one joint venture.

The company also maintains 10 global engineering centers and a corporate office in Pune, employing more than 15,400 people across the country, including its JV partners. The ZF Aftermarket division in India provides a comprehensive range of spare parts for its product brands: SACHS, LEMFÖRDER, TRW, and WABCO. These global technology centers in India are deeply focused on emerging fields like electric mobility, autonomous driving, vehicle motion control, electronics, embedded software, and mechanical engineering, while ZF products also find applications in rail, aerospace, marine, and defense vehicles. 

Talking about the transition towards alternate fuels, Akash Passey, President, ZF Group India said, " ZF see an excellent opportunity because our future around strength is all around technology and that is is of course creating an additional space for us to move".

Way Forward
ZF's intensified focus on India’s aftermarket underscores a global strategic realignment, positioning the country not merely as a market but as a pivotal hub for future expansion and innovation. By leveraging its established footprint, strong OEM relationships, and a targeted approach across diverse vehicle segments, ZF is looking  to capture a significant share of India's burgeoning automotive aftermarket, driving its ambitious double-digit growth targets in the coming year.