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Expanded Production Capacity
ZF Group, a major player in automotive supply and technology, has officially inaugurated a new electric parking brake (EPB) line at its manufacturing facility in Oragadam, near Chennai. This strategic move is set to produce EPBs specifically for passenger vehicles, targeting an impressive annual capacity of 80,000 units at its peak. The operation will initially require seven employees for the full assembly process, with plans to scale from a single shift to three in the near future.
Local Sourcing and Investment
The company is actively increasing its local component sourcing, aiming to raise it from the current 40 percent to 80-90 percent within the next two years. This new line is integrated into ZF's previously announced investment of $200 million to $250 million in India. While exact figures for this specific project were not disclosed, the expansion aligns with ZF's long-term growth strategy in the Indian automotive market.
Outlook for India's Auto Market
Akash Passey, President of ZF Region India, expressed optimism, noting that India's regulatory framework is increasingly mirroring developed auto markets. This evolution, coupled with original equipment manufacturers' significant investments in safety and efficiency solutions, positions ZF as a key partner for building advanced automotive components. Peter Holdmann, a Board of Management member, highlighted India's sustained market growth compared to North America and Europe.
In-Region Engineering Focus
Holdmann also emphasized a shift in engineering strategy, stating that the traditional model of centralizing engineering at headquarters is no longer practical. Customer expectations in markets like India and China demand in-region engineering capabilities, fostering closer collaboration and tailored solutions. ZF currently operates technology centers in Hyderabad and Chennai, supporting both passenger and commercial vehicle solutions, and is exploring the introduction of Advanced Driver Assistance Systems (ADAS) for the Indian market, adapting them for affordability.