ZF Hero Chassis Systems, a 50:50 joint venture (JV) of ZF Lemforder and the Hero Group, has planned to set up a new facility in the National Capital Region to manufacture chassis frames, axle systems and sheet metal components for the domestic car market.
The company has taken possession of the facility and will be investing around Rs 100 crore in the proposed venture. The first phase is likely to become operational by the end of the financial year.
Pankaj Munjal, managing director, Hero Motors, said, “ZF Hero is in talks with some original equipment manufacturers (OEMs) to supply sheet metal chassis assemblies. With the Indian automotive sector posting strong growth numbers, we are expecting demand to rise sharply in the auto component industry.”
ZF Hero already supplies chassis systems to General Motors in India for all their car platforms. The company manufactures the products at its plants in Halol in Gujarat and Talegaon, Pune, in Maharashtra.
Peter Holdmann, business head, ZF Hero Chassis Systems, informed, “The purpose of the JV is to provide European technology to manufacture components for the Indian car market.” On the cards are also plans of establishing a base in India for exporting components to markets overseas.
“Hero Motors has cost-efficient production facilities. We are currently doing feasibility studies to explore opportunities for exporting value-added sheet metal products of chassis systems for our global programmes,” he added. ZF Lemforder is the passenger car chassis division of ZF Group, a leading automotive industry supplier. With a workforce of more than 7,200 employees, the company operates 35 plants worldwide.
ZF Hero Chassis Systems will initially focus on design and development of chassis solutions and passenger car axle systems.
Hero Motors, a part of the $4.5-billion Hero Group manufacturers, provide end-to-end engineering solutions in the auto component industry. The company is into design, development and manufacturing of engines and transmission, ferrous castings, sheet metal. It customers include Maruti Suzuki, Toyota, BMW Hero Honda and Rota,x among others.
Hero Motors has two units at Ghaziabad, where it produces transmissions, sheet metals and gear boxes and at Manesar near Delhi, apart from the ones at Halol and Talegaon.