ZF Friedrichshafen AG is actively exploring partnerships and joint ventures in India as it sharpens its focus on growth markets, with Chief Executive Officer Mathias Miedreich saying collaborations will be central to expanding the group’s presence in the country.
In response to a question on the role of alliances, partnerships, and acquisitions going forward, he said: “It is extremely important because of the magnitude of the task and the number of problems to solve.”
Miedreich said India is likely to be the fastest-growing market in ZF’s global portfolio over the next five years and will play a key role in rebalancing the company’s revenue mix. “At a minimum, we aim to double our revenue in India. That is the goal,” he said.
India is being looked at as both a demand centre and a strategic sourcing and export base. The recently signed free trade agreement between India and the European Union could further strengthen that position. “We all think that auto parts at one point in time will be at zero duty,” he said.
ZF Group is restructuring its operations globally amid losses and is prioritising profitability and capital discipline. The company recently announced the sale of its ADAS business to Harman International.
ZF Group has a joint venture with Taiwan-based Hon Hai Technology Group (Foxconn) for manufacturing ZF’s passenger-car axle systems business for ICE and EV vehicles. ZF also operates a joint venture with KPIT Technologies for automotive software.
“And that's something [partnerships and JVs] that we have to now be precise about in the upcoming months. So we have now started our detailed planning on our India strategy with all the news that came in. In the second half of the year, I think we will be able to have a concrete way forward,” he said.
While the group is open to collaborations, he stressed that joint ventures must have clearly defined goals and shared expectations to deliver long-term value. He indicated that partnerships, acquisitions and other forms of cooperation are under consideration as part of a broader India roadmap, with a more detailed strategy expected in the second half of the year.
In India, ZF Group has longstanding joint ventures with the Rane Group through ZF Rane Automotive India for steering and safety systems. Earlier, partnerships included those with Brakes India of the TVS Group and ZF Hero Chassis Systems.
He also pointed to India’s relatively lower capital expenditure requirements compared with Europe, allowing more flexible manufacturing models and shorter break-even periods.
“Investing in India with the momentum we see and with the upfront investment required, I think that's a good bet that we can take and that we will for sure take,” he said.
Beyond automotive, ZF sees opportunities in rail, agriculture, construction and defence in India, reflecting its broader global portfolio.