ZF Group Opens New Manufacturing Unit in Oragadam

Oragadam- ZF Commercial Vehicle Solutions (CVS)., a supplier of automotive systems for passenger vehicles, commercial vehicles, and industrial technology, has inaugurated its manufacturing plant in Oragadam, where electric components will also be produced for the Indian and Asian markets. A week earlier, ZF's US plant in Gray Court began local production of the efficient and hybrid-capable PowerLine transmission for light commercial vehicles for the North American market. With both locations, the CVS division continues its global growth and sustainability strategy. 

Dr. Peter Laier, Member of the ZF Board of Management and responsible for the Commercial Vehicle Solutions Division and the Production Function, said that, The Oragadam plant expands our global production network, meeting rising demand from Indian and Asian manufacturers locally. European and German plants act as lead facilities for production technology globally, reinforcing our position as a top supplier of commercial vehicle technology worldwide.

Decarbonization of commercial vehicle drives - worldwide

ZF expands its global presence with a new plant in Oragadam, India, marking its 19th on the subcontinent and 10th in Tamil Nadu. The facility will produce electric components for commercial vehicles, alongside chassis components, with an initial size of 7,000 square meters, expanding to 15,300 square meters in the future. A total investment of EUR 200 million is planned until 2032. Additionally, the ZF CVS division recently expanded its North American plant in Gray Court, USA, becoming the second site to manufacture the hybrid-capable PowerLine transmission for the North American market, with production expected to reach up to 200,000 units next year.

Growth and sustainability strategy

ZF CVS division expands globally to meet market demand locally, following a sustainable growth strategy. By establishing production facilities in key regions like India, ZF reduces costs and customs duties, enhancing competitiveness. German facilities benefit by supplying components globally, such as mechatronics modules from Saarbrücken and electronic control units from Auerbach for the PowerLine transmission in Gray Court, USA. Friedrichshafen plant is designated as the leading site for electromobility technologies in ZF's strategic vision.

Expanding production locally in India reduces emissions from transportation and aligns with sustainability goals. ZF plans to power the new Indian plant with 100% renewable energy, including solar and wind. Additionally, rainwater collection and reuse systems aim for water neutrality by 2025 at the Oragadam facility.

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