ZF Hero Chassis Systems, a joint venture between Hero Motors and Germany's auto component major ZF, today said it is in talks with Suzuki and Honda to supply components in India.
The company, which currently supplies axle assembly to General Motors India, also said it will be investing Rs 100 crore to set up a new plant as part of an expansion strategy in India.
"At present our supplies are to only General Motors India from our plants in Talegaon and Halol. Now we are looking to expand. Currently we are in talks with talks with Suzuki and Honda to supply to them as well," Hero Motors Managing Director Pankaj Munjal told PTI.
As part of strategy to expand its business, the 50:50 joint venture between the two partners also plans to set up a new factory to produce sheet metal, he added.
"About Rs 100 crore will be invested on the new plant to be located in the national capital region," Munjal said but did not disclose the exact location.
The plant is expected to be operational by the end of this financial year.
The company currently has a production capacity of about 50,000 tonnes annually from its two existing locations. The new plant will increase it by up to 70 per cent, he added.
ZF and Hero Motors had entered into a joint venture agreement in March this year, mainly aimed at enhancing supply of chassis technology to car makers in India, mainly in the small car segment.
Hero Motors provides engineering services for the automotive industry, including development and design, and also produces chassis components, including axle systems.
ZF, on the other hand, is a leading worldwide automotive supplier for driveline and chassis technology.