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ZF Aftermarket’s Next Leap in India: Localisation, Digitalisation & Market Proximity

Underlining its strategic commitment to India and the wider region, ZF Aftermarket is intensifying efforts to grow its footprint, deepen localisation, and deliver future-ready solutions that cater to a rapidly transforming ecosystem. In a recent interaction with N. Balasubramanian and Abhilash. U, Andre Scholle, Vice President and Head of Region India, Türkiye, MEA, CIS, ZF Aftermarket, outlined the company’s growth roadmap, vision for the Indian market, and the critical enablers that will drive its evolution from a premium parts supplier to a partner of choice in the aftermarket value chain.

India: The Strategic Growth Anchor

ZF Aftermarket’s strategy places India at the core of its regional growth plans. Andre, who leads one of ZF’s fastestgrowing regions, made this clear: “India is probably the most crucial part of the region I head, which spans from Cape Town to Vladivostok. Our ambition is to make this region the biggest for ZF Aftermarket globally within the next five to eight years – and that can only happen with India.”

To support this ambition, ZF has committed to expanding its market reach beyond traditional metro strongholds like Delhi, Mumbai, and Chennai. “We are pushing into Tier II cities to improve proximity and access across the country. Customer closeness is a key lever in our strategy,” he said.

From Legacy to Localisation

While ZF Aftermarket carries the strong legacy of premium German engineering, the company acknowledges the importance of local solutions in a cost-sensitive, high volume market like India. “A majority of our parts are still not localized. That’s a gap we are actively addressing,” Andre said. The company’s shock absorber assembly unit in Pune marks the beginning of this shift, and more components – including braking systems – are under consideration for local development.

Localization is not just a matter of cost, but also a way to address customer needs more effectively. “We know that to grow in the Indian aftermarket, we need to offer solutions that are designed for this market – not just imported from Europe,” he emphasized.

Expanding the Ecosystem: Beyond Parts Distribution

ZF’s aftermarket strategy goes beyond traditional spare parts distribution. Recognizing the dynamic evolution of the market, Andre stressed the importance of supporting every link in the value chain – from distributors to workshops to fleet operators.

“We are moving from a pure parts business to an ecosystem approach. It’s about delivering value across the chain – focusing not just on products, but on workshop concepts, digital solutions, diagnostics, and fleet services,” he explained. ZF [pro]Tech and ZF [pro] Tech plus workshop programs are already being rolled out, with over 250 ‘Start’ partners onboarded and flagship facilities set up in key cities like Delhi.

Digital & Diagnostics: The Next Frontier

Digitalisation is a key pillar of ZF Aftermarket’s future roadmap, particularly in the areas of diagnostics and workshop support. The company has established a digital business line in India tasked with  identifying, adapting, and developing digital tools tailored to local needs.

“The digital aftermarket in India is a moving target. We can’t simply transplant global solutions here. We need localised, scalable tools for diagnostics and workshop enablement,” Andre remarked. He highlighted that diagnostics will be “one of the biggest opportunities,” particularly as garages deal with increasingly complex vehicles and emission norms.

ZF is also exploring test and diagnostic equipment solutions leveraging its industrial division, with potential integration into workshops and fleet services. “Step by step, we aim to move toward a more standardised, universal diagnostics platform. That should be our ultimate target,” he added.

Brand Portfolio and Price Perception

On the brand front, ZF is adopting a multi-tier strategy that balances its premium image with market realities. All major ZF aftermarket brands, including TRW, Lemförder, and SACHS, are sold in India. Additionally, the company is leveraging second-line brands to address price sensitive segments without compromising on quality.

“We will not go down the ultra-low-cost route, but we are making sure we have the right offering across the ‘better’ and ‘best’ segments,” Andre clarified. “The idea is to offer fitfor-purpose solutions without diluting our core value of safety and quality.”

Strategic Aspirations and Competitive Advantage

Globally, ZF Aftermarket is the second-largest player, and Andre believes this position can eventually be mirrored in India as well. “We are currently among the top ten players in India, but I want ZF to be not just dominant – we want to shape the aftermarket of the future here,” he said.

Achieving this will hinge on three key drivers: expanding the product portfolio, improving customer proximity through faster delivery and logistics, and future-proofing with digital and localised innovations. “Our ambition is to become a partner of choice across the mobility ecosystem – CV, PC, industrial and digital. That’s the play,” he added.

Remanufacturing and Sustainability

ZF is also exploring remanufacturing as a sustainability initiative within the region, with pilot projects already active in Turkey. “Reman is part of our global sustainability focus, and India will certainly be included in future plans,” Andre confirmed.

Navigating Risk and Seizing Opportunity

While Andre acknowledged the political, economic, and competitive risks that come with a diverse region, he remains optimistic. “There will always be external headwinds–from currency fluctuations to geopolitical tensions – but we have a robust strategy in place. More importantly, the opportunities in India far outweigh the threats.”

He concluded with a firm statement of intent: “Unlike Europe or North America, we are in a region that’s still on a growth path. And we at ZF Aftermarket are ready to be part of that journey – not just as participants, but as enablers of the future.”