ZF enters joint venture with Hero Motors Ltd. of India

ZF CEO Hans-Georg Härter explains the reasoning behind the partnership: “The excellent reputation and market expertise of the Hero Group and the owning family Munjal will smooth our access into the Indian automotive market. Our contribution to the joint venture will be ZF’s technological expertise and our broad know-how in chassis design.”

The Hero Group has been active in the motorbike market for years and, through its subsidiary, Hero Honda Motors Ltd., is the world’s largest motorcycle manufacturer. As part of its portfolio, Hero Motors Ltd. provides engineering services for the automotive industry, including development and design, and also produces chassis components, including axle systems. As a result of the ZF Hero Chassis Systems joint venture, ZF now has a 50-percent share of this axle systems business.

Peter Holdmann, Head of the Chassis Systems Strategic Business Unit of the Car Chassis Technology Division and in charge of ZF axle system business activities, explains: “The aim of the joint venture is to enable us to offer ZF chassis technology to the Indian car market at local costs. Our durable, rugged, resource-saving products are recognized by customers around the world. The tie-up with Hero Motors will allow us to design and produce them at marketable prices for models ranging from mini to compact for the Indian market. To accomplish this to an optimal degree, we will be establishing our own development operations in India to support the joint venture. In addition, collaborating with Hero will open up new opportunities for us to start manufacturing high added-value pressed sheet metal components for small-vehicle axle systems ourselves,” Holdmann continued, after signing the contract on behalf of ZF in New Delhi. The Hero Group was represented by company director Pankaj Munjal.