Whether on water, on rails, or across rugged terrain, the Industrial Technology division of the €41.4 billion ZF keeps the world moving with advanced driveline and transmission solutions. From hybrid and electrified systems to intelligent digital services, the division delivers sustainable, safe, and high-performance technologies across agriculture, construction, forklifts, marine propulsion, rail, wind power, and micromobility. Despite the division’s vast footprint, suppliers in these segments face mounting pressure from regulatory shifts, technological disruption, and global uncertainty.
Yet ZF remains unfazed, Andreas Moser, Executive Vice President, ZF Industrial Technology, told Mobility Outlook. 'We’ve already weathered a perfect storm—COVID, wars, inflation, and surging energy costs,' he said. The company’s answer to these headwinds is rooted in India, where its newly inaugurated Coimbatore facility is poised to become a strategic second hub alongside Germany.
Built with an investment of €20 million (INR 192 crore), the 10,000 sq metre off-highway plant will serve India’s booming construction market and global demand for robust driveline systems. It will produce the ERGOPOWER M transmission, capable of delivering up to 15% fuel savings, and the modular MULTITRAC axle series for heavy-duty machinery. The plant will also manufacture the EcoMet transmission for India’s metro rail sector—advancing ZF’s localisation efforts in a market where it already holds strong global presence.
India: ZF’s Tri-Engine For Cost, Capability, Digital Growth
According to Moser, India plays a pivotal role in ZF’s global strategy—not just as a cost-effective sourcing base, but as a powerhouse of talent and innovation. “There’s a significant cost advantage in sourcing materials from India compared to elsewhere; but more importantly, India offers highly skilled and experienced professionals—not only in Coimbatore but also within our global operations, he said.
Beyond manufacturing, India has become a vital design and digitalisation hub for the global company, supporting both internal systems and customer-facing services. This dual capability—engineering and digital innovation—positions India at the heart of ZF’s efforts to navigate global volatility. With signs of market recovery expected by 2026, the division sees its deepening presence in India as essential to building resilience, driving efficiency, and sustaining global competitiveness.
Andreas Moser
Balancing Diesel Dominance With Electrification & Regulation
While the push for electrification accelerates globally, diesel-powered off-highway machinery will remain dominant for years—especially in heavy-duty segments. Yet, even these legacy platforms must meet tightening regulations around emissions and fuel efficiency. ZF is navigating this transition with a dual-pronged strategy: enhancing conventional drivetrains while advancing electrified alternatives.
Through its modular Efficiency Package, ZF integrates axles, transmissions, and intelligent software into a cohesive system tailored for various applications—wheel loaders, graders, dumpers, and more. This system-level synergy boosts fuel efficiency, operator comfort, and productivity while reducing total cost of ownership through lower maintenance and energy use.
“Western regulations are pushing us toward greater electrification, and China is already leading the charge,” said Moser. With electric compact loaders commanding 30% market share in China, local OEMs are not only selling machines but exporting the underlying technology. In response, ZF has pre-emptively developed a full range of electrified drivetrains and is preparing to deliver its “largest electric central drive to a Chinese customer in the coming months,” he said.
ZF’s fuel-agnostic approach offers further flexibility. Its current transmissions, designed for ICE applications, can be adapted for alternative powertrains with a simple software update—minimising “redesign efforts while remaining regulation-ready.” Still, regional divergence in rules adds complexity and cost, particularly as multiple low-volume solutions risk undermining economies of scale.
Yet for ZF, according to him, constant product evolution is business as usual. Despite weak markets, the company continues to invest steadily in R&D, confident in its ability to meet diverse regulations while maintaining its competitive edge, he said.
Doubling Down On India
With its newly inaugurated facility in Coimbatore now operational, ZF is already setting its sights on expansion—an adjacent 10,000 square metres of space is ready to accommodate future growth. The goal is to double production capacity in India within the next five years, he mentioned.
Currently, about 75–80% of output from the Coimbatore plant is exported, supported by its location within a Special Economic Zone. While this export focus is strategic, the company is keen to deepen its presence in India’s domestic market. “The local market is still largely cost-driven. But I believe the demand for quality and technology will rise,” he said.
Moser pointed to the visible surge in infrastructure development across Indian cities as a key growth trigger. As these projects drive demand for high-performance machinery and components, Moser is confident that the Tri-Engine approach—focused on Cost, Capability, and Digital Growth—will usher in a new phase for ZF’s industrial business in India.
India As Digital, Engineering Backbone
ZF’s India Tech Centre plays a pivotal global role, extending far beyond product support. As a centralised hub, it brings together engineering talent from across divisions, fostering deep collaboration and knowledge sharing. For the Industrial Technology division, this translates into faster development cycles, greater efficiency, and cross-functional innovation, he noted.
In parallel, ZF’s Coimbatore facility houses engineers who work closely with the products on the shop floor, ensuring a strong feedback loop between design and manufacturing. India has also emerged as ZF’s global nerve centre for digitalisation. With a dedicated digitalisation team now in Coimbatore as well, the company is leveraging India's deep talent pool not just for production or sourcing, but as a strategic pillar for digital transformation and global engineering excellence.
By anchoring high-tech manufacturing in India, ZF not only boosts supply chain resilience but also sharpens its competitive edge in delivering world-class solutions tailored for tomorrow’s mobility demands, he concluded.
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ZF Group Strengthens India Footprint With New Plant In Coimbatore