India Becomes ZF's Aftermarket Powerhouse In Response to European Slowdown

In a strategic shift away from slowing European markets, global auto-technology leader ZF Group is looking to India's burgeoning vehicle business, particularly its commercial vehicle segment, to make the nation a central hub in its aftermarket strategy.

India's Commercial Vehicle Surge

Andre Scholle, VP for India, Türkiye, MEA, and CIS at ZF, added that India's expanding vehicle fleet is one of the fastest-growing in the world, with especially robust traction in commercial vehicles (CVs) ZF has already more than 70 percent share in local CV aftermarket components, albeit that represents just some 15–20 percent of its total aftermarket sales at present. The group is determined to grow this spectacularly over the next couple of years

The ZF Strategy: CV, Passenger and Construction Focus

ZF's Indian aftermarket strategy is organized into three key verticals:

1. Commercial vehicles: Leveraging ZF's commanding local CV presence, the focus is on increasing spare-parts penetration and moving into the Light Commercial Vehicles (LCVs) segment. 

2. Passenger cars: While ZF's roots are deeper in Europe, the company is aiming to expand double-digit market share in India's passenger car aftermarket. It is planning localising manufacturing and expanding its product portfolio from its SACHS, LEMFÖRDER, TRW and WABCO brands

3. Construction equipment: Riding India's infrastructure boom, ZF has built a special plant in India to cater to the construction industry. With volumes projected to almost double within five years, this segment is high-growth in potential.

Infrastructure Growth: A Catalyst for Aftermarket

India's ambitious infrastructure plans, from roads and bridges to ports and metros, are driving demand for heavy machinery. ZF's new plant focuses on high-value aggregates such as axles and gearboxes, enabling it to serve domestic aftermarket demand and minimize import dependence.

ZF's Indian Footprint

ZF Group achieved €41.4 billion in worldwide sales in the financial year 2024, operating 161 production locations across 30 nations and employing 161,600 people. In India, where it has been operating for approximately six decades, the firm has 18 factories, 14 units (including JVs), and ten engineering centers. Its more than 15,400-strong workforce comprises local and joint‑venture staff.

ZF's engineering centers in India target advanced areas such as electric mobility, autonomous driving, embedded software, and vehicle motion control, broadening into industries such as railways, marine, aerospace, and defence.

Constructing the Aftermarket Ecosystem

In aid of aftermarket scale-up, ZF is fortifying its distribution network and workshop penetration. Plans involve rolling out authorised multi-brand workshops, enhancing mechanic training, and enhancing brand awareness, crucial steps away from Europe's more evolved markets.

The European Contrast

While demand falters in established European markets, India is seen by ZF as a "centre of gravity" for aftermarket development. Forecasting by the Indian auto industry, as per ACMA, indicates the aftermarket in India will grow from around US$10 billion (2023) to more than US$14 billion by 2028, providing rich soil for ZF's double-digit growth ambition.

Outlook and Implications for Commercial Vehicle Makers

ZF's further penetration of India's aftermarket arena gives commercial vehicle producers, both OEMs and remanufacturers, opportunities for synergy. A developed aftermarket ensures vehicle uptime and reduces total cost of ownership, essential in India's logistics-based market.

Additionally, while localising critical components and increasing service infrastructure, Indian CV OEMs benefit from improved parts availability and shorter lead times, a fleet operator's dream. The trend promises to raise standards across the commercial vehicle ecosystem.

Looking Ahead

Through focused investment, local production, and a three-pillar segment strategy that covers CVs, passenger vehicles, and construction equipment, ZF is shaping India into a global aftermarket leader. For India's commercial vehicle market, it represents the transition towards locally supported higher-quality aftermarket solutions. While Europe's speed slows, India's strong mobility demand puts it in the heart of ZF's future growth and innovation.

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