ZF India Powers Smarter Construction Equipment with Technology & Localisation

With expanded localisation and a broader technology portfolio, ZF Group India is gearing up to power the next generation of smart, connected construction equipment (CE) in the country.

Akash Passey, President of ZF Group India, highlighted that the Indian CE market has evolved beyond price-based decisions. Speaking on the sidelines of EXCON, he noted that technology, productivity, and long-term value are now key factors driving purchases by OEMs and fleet owners.

Since 2014, sustained government infrastructure spending has driven strong growth in construction activity, reflected in industry exhibitions like EXCON. ZF’s own presence at the show has more than doubled compared to two years ago, demonstrating both higher ambition and a broader product portfolio.

In June 2026, ZF began operations at a new CE manufacturing and assembly plant in Coimbatore. Located in a Special Economic Zone, the facility produces transmissions and axles for Indian OEMs and global customers. It provides significant expansion capacity and supports some of India’s largest equipment makers, reinforcing ZF’s long-term confidence in India as a production and export base.

Shifting Market Dynamics

Customer priorities in the Indian CE market are changing. While upfront cost previously dominated decisions, today lifecycle cost, uptime, and overall value have become critical considerations. Indian OEMs such as JCB and Tata Hitachi are increasingly discussing advanced technology, durability, and productivity, influenced by global exposure and export ambitions. As India serves markets in the Middle East, Africa, and Southeast Asia, expectations for quality and performance have risen sharply.

Technology Expansion

ZF is moving beyond its traditional strengths in axles and transmissions to address evolving market needs. Key focus areas include:

• Electrified drivelines for CE applications
• Electronic control units for smarter operations
• Telematics for connected and data-driven equipment

These efforts are backed by a strong commitment to research and development, with ZF allocating over 6% of global revenue to R&D. The company aims to stay relevant as machines become more connected, intelligent, and efficient.

Meeting CE Segment Challenges

Off-road construction machines have long operating lifespans, requiring durable yet modern equipment. ZF is developing heavier-duty axles and advanced transmissions to withstand long working hours, harsh environments, and evolving regulations. These solutions are designed to improve productivity while supporting higher loads and tougher duty cycles.

Growth Outlook

India’s CE market is expected to double over the next five years, making it the fastest-growing automotive segment. This growth is anticipated to accelerate technology adoption, including:

• Software-defined vehicles and telematics, particularly for mines and large project sites
• Electrification for lower-tonnage machines to meet sustainability goals and emission regulations

ZF already deploys electric drivelines in Europe and sees India as a major frontier for similar adoption.

Strong Localisation Strategy

ZF’s localisation strategy underpins its growth in India. Currently sourcing materials worth over ₹6,000 crore for global operations, ZF plans to increase this five-fold over the next five years, focusing on forgings, castings, and electronics. Local engineering and manufacturing are central to delivering competitive solutions while meeting global quality standards.

Conclusion

By expanding its footprint, broadening its portfolio, and investing heavily in localisation, ZF Group India is aligning itself with the country’s infrastructure ambitions. The company is preparing for a future where construction machines are not only stronger and more durable but also smarter, cleaner, and highly connected, setting new benchmarks for productivity and sustainability in India’s CE sector.