German auto component major ZF Friedrichshafen AG aims to at least double its revenue in India by the end of this decade, Chief Executive Officer Mathias Miedreich said, positioning the country as both a growth market and a global sourcing and export base for the group.
“Minimum double our revenue in India. That's the goal that Akash (Indian MD) and the team will get, or have, or will get,” Miedreich told Autocar Professional. “And I do not doubt that it is achievable, maybe even more than that. Even more than that.”
India, he said, sits “at the heart and center of this opportunity,” supported by growth not only in automotive but also in rail, agriculture, construction and defence. The company generates about two-thirds of its global revenue from automotive and one-third from non-automotive sectors.
In India, the ZF Group supplies components for a wide range of vehicle applications. These include active and passive safety systems, steering, clutch, axle and suspension components, as well as powertrains, chassis and safety components, transmissions, steering and axles. The company also makes gearboxes for trains and the turbine industry.
Miedreich said India is likely to be the fastest-growing market in the 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 growth rate of India probably will be the highest in our portfolio.”
He pointed to an imbalance in the ZF Group’s global sales mix, with Europe accounting for around half of revenue despite representing a much smaller share of the global automotive market. “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.”
ZF Group plans to significantly 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, adding that planning work has already begun.
ZF Group sees significant headroom in India’s passenger vehicle segment. Globally, passenger vehicles account for about two-thirds of the group’s business, but the mix in India is different. “Globally, we have two-thirds in Pesca. In India, it's the opposite. So, that's a lot of growth potential,” Miedreich said.
He also highlighted opportunities in railways as India modernises its coach fleet. “Rail, it's not yet the case, but we are taking steps there as well,” he said, adding that technology deployment in rail and other infrastructure segments could support broader diversification beyond automotive.
ZF Group does not separately disclose revenue generated from India; instead, it reports sales by broader geographic regions. As per the company's annual report for the financial year 2024, the group’s €41.4 billion in revenue is broken down across EMEA (47%), North America (27%), Asia-Pacific (23%) and South America (3%), with India included within the Asia-Pacific segment rather than identified as a standalone market.
Although the report outlines India as a key growth region, detailing expanded manufacturing capacity and localisation initiatives, it does not specify the country’s contribution to group turnover. Miedreich said the company’s focus on profitability and flexibility would guide investments as it seeks to raise India’s share within its global business.