ZF Lifetec Invests €5 Mn For New GCC In Hyderabad
The GCC launch follows ZF Lifetec’s facility in Trichy, which began production of inflators recently after shifting operations from Aschau
German automotive safety systems major ZF Lifetec has expanded its global footprint with a new Global Capability Centre (GCC) in Hyderabad, investing EUR 5 million to establish the facility. The facility, which was inaugurated on Thursday, will initially host 200 employees, with plans to scale up to 400 as part of the company’s future growth strategy, which includes completing an acquisition.
The GCC launch follows ZF Lifetec’s facility in Trichy, which began production of inflators recently after shifting operations from Aschau.
ZF Lifetec has 22 per cent global market share in passive safety systems and recorded worldwide sales of EUR 4.7 billion (Rs 41,303 crore) in 2023. The company operates in 48 locations across 20 countries, employing around 36,000 people globally.
The company’s products are aimed at addressing the growing safety concerns on Indian roads. According to statistics from the Ministry of Road Transport and Highways (MoRTH), over 1,53,972 individuals lost their lives in road accidents in 2023. Passive safety systems like those developed by ZF Lifetec play an important role in mitigating these tragedies.
Local Expertise And Global Integration
Speaking on ZF’s India focus, Akash Passey, President at ZF India, mentioned the strategic importance of localising ZF Lifetec’s cutting-edge technology for the Indian market. “Along with ZF Group and joint venture partners Rane Group, we are going to translate the technology from ZF Lifetec developed from here to manufacturing locally, which means it will be available to all our customers (OEMs), both Indian and global, at a competitive cost point,” said Passey.
The Hyderabad centre is part of ZF Group’s larger presence in India, which includes 16,000 employees, 3,000 of whom are based in Hyderabad.
“We are building on our already established strengths in India with a clear growth path ahead, and the country plays a critical role in that vision. With this development center in Hyderabad, we aim to establish local expertise. Rather than simply relaying information from Europe, we are creating a team of experts capable of directly interfacing with customers, conducting development and testing locally, and providing full support,” Rudolf Stark, Executive Vice President at ZF Lifetec told BW Businessworld.
He added that this is a key part of ZF Lifetec’s global strategy, with India playing an increasingly important role.
The Regulatory Landscape And Auto Safety In India
Discussing India’s road safety challenges, Passey stressed the urgency of addressing the high number of fatalities. “India loses 1,50,000 lives annually to road accidents—the highest in the world. The government has woken up to this challenge in last many years. If you approach the Indian government with life-saving technologies that can be localised and offered to both local and global OEMs, they’re not only receptive but also willing to incentivise faster adoption,” he said.
Passey also pointed out how regulatory changes in India have accelerated over the past few years, including the rapid implementation of BS-VI norms, advancements in electric vehicles and discussions around alternative fuels like ethanol and hydrogen. “In the realm of safety, new regulations, like making ESC (Electronic Stability Control) mandatory on buses, are coming much faster. With these trends in mind, we are heavily invested in India to seize the opportunities ahead.”
ZF Lifetec India Head Ravikumar Tirumukulu also noted the progress made by India in auto safety standards over the past decade. He reflected on his experience since returning from Germany in 2006, mentioning how safety standards have gained momentum in recent years.
“ZF Lifetec has been educating legislators about the importance of safety technologies in saving lives, leading to the introduction of key regulations like frontal and side-impact standards since 2017,” he said.
While acknowledging the progress, Tirumukulu stressed the need to further speed up the adoption of safety measures.
Global Standards And Future Ambitions
As India’s automotive exports currently stand at USD 20 billion, Passey pointed out that the government has set the ambition to increase this to USD 100 billion. Achieving this goal would require Indian manufacturers to meet global safety and quality standards. “The same high standards must apply across both domestic and export markets to ensure consistent quality,” said Passey, adding that this push for global parity is driving rapid changes in India’s automotive sector.
“This is another reason we expect safety to become a priority, and the space will speed up pretty fast,” he concluded, expressing optimism for the future of the industry in India.
