ZF Group Transfers Full Ownership of Indian Joint Venture to Somic Ishikawa

ZF India Pvt Ltd and Somic Ishikawa Inc. have completed an agreement transferring 100% ownership of their joint venture, Somic ZF Components Pvt Ltd, to the Japanese automotive parts manufacturer. The transaction ends a business partnership that began in 1993, though financial terms were not disclosed by either party.

The acquisition allows Somic Ishikawa to gain full control of three manufacturing facilities in India that produce ball joints for steering and suspension systems. The facilities serve both domestic and international customers, with strategic locations positioned near major automotive manufacturers. Current management will remain in place to maintain customer relationships and operational continuity.

Somic ZF Components was established in 1993 as a joint venture between the German automotive supplier ZF Group and Japan's Somic Ishikawa. Over three decades, the partnership developed capabilities in steering and suspension systems, building a customer base across India's automotive sector. The company's operations have grown alongside India's expanding automotive manufacturing industry.

For Somic Ishikawa, the acquisition represents an expansion of its presence in the Indian market, which the company views as central to its growth strategy. The Japanese manufacturer plans to leverage the joint venture's existing technology, customer relationships, and operational experience to enhance its market position. Kaname Saito, Managing Director of Somic Ishikawa, described India as one of the most important markets for the company's business strategy.

ZF Group will continue to provide technology licensing and design support to ensure uninterrupted product supply to existing customers. The German company positions the divestiture as part of its portfolio optimization strategy, allowing it to focus on core business areas while maintaining its presence in India's chassis systems market.

Akash Passey, President of ZF Group in India, said the move enables the company to concentrate on larger chassis system solutions while adapting to local market requirements and technological developments in India's automotive sector.

The transaction reflects broader trends in the automotive supply chain, where companies are restructuring partnerships to optimize operations and respond to changing market conditions. India's automotive industry continues to attract investment as manufacturers seek to capitalize on the country's growing domestic market and export potential.

Both companies indicated they expect the transition to proceed without disruption to customer service or product delivery. The acquisition maintains employment at the three Indian facilities while positioning both organizations to pursue their respective strategic objectives in the Indian automotive market.