Suppliers Need Speed, Flexibility, not Rigid 10-Year Plans: ZF CEO Miedreich

Automotive suppliers must prioritise speed and flexibility over rigid long-term roadmaps as markets turn increasingly unpredictable, according to ZF Friedrichshafen AG Chief Executive Officer Mathias Miedreich. He believes that traditional decade-long planning cycles no longer work in today’s environment.

“In the automotive world, you cannot make any more long-term plans. A 10-year plan, forget about it,” Miedreich told Autocar Professional. He cited rapid shifts in geopolitics, trade policy and technology that have reshaped the industry in recent years.

Miedreich pointed to sudden tariff changes and sharp swings in electric vehicle demand as examples of volatility that have made forecasting difficult. “Next week, Mr. Trump does something else and there is a new duty in China and there's whatever is going on,” he said, underlining the need for operational agility.

According to Miedreich, flexibility and reactivity have become essential capabilities for suppliers seeking to stay relevant. “Flexibility and reactivity, speed, will be essential,” he said, adding that companies must define their core strengths clearly and avoid spreading themselves too thin.

ZF Group’s own strategic shift reflects that thinking. Miedreich said the group has moved away from trying to do everything and is instead focusing on enabling motion through its core technologies. “We are good at enabling motion,” he said.

The emphasis on adaptability comes as ZF Group targets at least doubling its revenue from India by 2030. “At a minimum, we aim to double our revenue in India. That's the goal that Akash and the team will get, or has, or will get,” he said. “And I do not doubt that it is achievable, maybe even more than that. Even more than that.”

Miedreich described India as likely to be the fastest-growing market in ZF Group’s portfolio over the next five years, as growth in Europe and North America remains muted and China expands at a slower pace than in the past. “The relative, you know, growth rate of India probably will be the highest in our portfolio.”

He also acknowledged an imbalance in ZF Group’s global sales mix. “Today, our global sales distribution is around 50% in Europe, while Europe represents only 20% of the global automotive market. So, there is an imbalance in itself,” he said, suggesting future growth must come from other regions.

India, he said, is central to that rebalancing effort, both as a demand centre and as a sourcing and export base. The recently signed free trade agreement between India and the European Union could strengthen that position. “We all think that auto parts at one point in time will be at zero duty,” he said.

ZF Group plans to step up investments in India, with a detailed strategy expected in the second half of the year. “We will significantly invest in India to have this growth also secured for us,” Miedreich said. Partnerships and joint ventures are also under consideration, though he stressed they must be carefully aligned.