ZF Commercial Vehicles Solution to rely on further production plants in India and the U.S.

ZF Commercial Vehicles Solution will open new production plants in India and the U.S. The global company has chosen Oragadam, India, for the production of electrical components for the Indian and Asian markets. On the other hand, the hybrid-capable PowerLine transmission will be manufactured at the existing U.S. plant in Gray Court.

Oragadam is the 19th ZF plant to be located on the Indian subcontinent, the tenth in the Tamil Nadu region. In addition to chassis components, electric components such as the air compressor for light and medium-duty commercial vehicles will soon be produced in the facility, which spans more than 7,000 square meters. The plant size will be expanded to 15,300 square meters in a second phase of construction. The total investment until 2032 will amount to EUR 200 million.

ZF Commercial Vehicles to reorganize global production

After Friedrichshafen, the plant in Gray Court, U.S., is the second production location of the hybrid-capable commercial vehicle transmission PowerLine – now for the North American market. The ramp-up plans already envisage up to 200,000 units next year.

Expanding in this way also means ZF will be able to acquire orders at competitive costs – without customs duties and transport costs – such as in India. The German facilities also benefit from this strategy because they will supply more components for the systems being produced in ZF’s global locations. For example, mechatronics modules from Saarbrücken and electronic control units from Auerbach are supplying Gray Court for PowerLine. And the ZF CVS plant in Friedrichshafen was also recently designated as the leading location for electromobility technologies for commercial vehicle drives in ZF’s latest strategic vision.

“With our plant in Oragadam, we are expanding our global production network that will enable us to meet the expected growing demand of Indian and Asian manufacturers with local production,” explained Peter Laier, Member of the ZF Board of Management and responsible for the Commercial Vehicle Solutions Division and the Production Function. “In this production network, our European and German plants, in addition to serving the local European market, play an important role as lead plants for production technology know-how globally. These latest plant development projects therefore strengthen our position as a leading global systems supplier of commercial vehicle technology”.