Revving Up the Aftermarket

WITH A LEGACY in precision engineering and a global footprint in the automotive aftermarket, ZF has turned its focus to one of the world’s most promising mobil­ity markets. The growing vehicle base and evolving customer preferences are creating fertile ground for or­ganised players and ZF sees a compelling opportunity.

A GLOBAL LEADER WITH LOCAL AMBITION
“Globally, ZF is No. 2 in the aftermarket, just behind Bosch. In India, our goal is to mirror this success,” said Andre Scholle, Vice President and Head of Region In­dia, Türkiye, MEA, CIS, ZF Aftermarket. The company estimates it is already within the top 10 in India, driven by the strong legacy of WABCO, which ZF acquired in 2020. Now, it is looking to scale further by leveraging local insights, expanding its portfolio and building a future-ready service ecosystem. “Our aspiration is clear: to become a dominant force shaping the future of India’s aftermarket,” stated Scholle.

While Europe currently contributes over half of ZF Aftermarket’s EUR 3.6 billion revenue, the IMEA region is its second-largest con­tributor. The company has set ambitious plans to make IMEA the largest af­termarket region within five to eight years. India is the fastest-growing in this region. It not only offers significant domestic opportunity but also serves as a springboard for regional expansion. “There are strong synergies across the region,” Scholle noted and continued, “the vehicle fleets in Africa are similar to India’s and Indian communities in the Middle East are part of the same ecosystem. Solutions developed here can deliver benefits across markets.” This marks a sig­nificant strategic shift for ZF – from a Europe-centric approach to one that sees emerging markets like India as central to its future growth.

CHANGING CUSTOMER MINDSET
The Indian aftermarket is evolving rapidly, from a fragmented, price-driven space, to one that prioritises quality, reliability and safety. “There’s a visible shift in customer mindset,” pointed Abhishek Verma, Head, ZF Aftermarket India and said, “where low-cost, un­branded parts once dominated, we now see increasing demand for performance-oriented and trusted products, especially in critical systems like brakes, clutch­es and engine components.”

ZF claims has a strong edge in com­mercial vehicles and industrial solutions. Its original equipment legacy in this space is stronger than in the passenger car

segment. “This strong foundation, combined with an extensive service footprint and specialised fleet solutions, gives ZF a distinct edge, especially since servicing needs in the CV and industrial space are sig­nificantly different from those in passenger vehicles,” highlighted Scholle.

With WABCO’s strong base in commercial vehicles, ZF is now focusing on ramping up its presence in the passenger car segment, the biggest growth engine. Digital tools, especially diagnostics, are also emerging as a critical frontier. “Anyone can replace a brake pad, but diagnostics is where real value lies,” Verma noted. Its suite of digital offerings spans diagnostics, predic­tive maintenance and garage management tools, all integrated with core product offerings.

PILLARS OF INDIA GROWTH STRATEGY
The company’s aftermarket growth strategy in India is anchored on three key pillars. First, it is focusing on portfolio expansion, particularly in the passenger car segment, where current offerings are largely Euro-centric. By 2027, ZF aims to cater to up to 90 per cent of India’s vehicle parc with products such as brake pads tailored for Asian vehicles.

Second, market penetration by strengthening its logis­tics network to ensure 84-hour delivery of parts across the country. ZF already has over 500 direct distributor touchpoints and more than 700 delivery points, sup­ported by a retail network of over 80,000 outlets. This wide network will help ZF serve customers quickly and efficiently across India.

Third, by investing in digital ecosystem development by introducing a range of solutions from connected di­agnostics and telematics to preventive maintenance. The company is investing to understand the unique needs of this aftermarket as India’s scale and diversity makes it unsuitable for one-size-fits-all strategy. ZF is focused on creating fit-for-purpose digital innovations that supports workshops, fleets and retailers across the country. This hybrid model will be a mix of global experience and localised solutions.

PRO WORKSHOPS FOR PROFESSIONAL SERVICE
ZF is also building a premium workshop network un­der its ‘Pro’ brand, beginning with a benchmark facility in Delhi that can handle up to 250 vehicles. Three more locations are already operational, with additional sites planned. This investment is part of ZF’s dual workshop strategy under its [pro]Tech programme, which in­cludes two formats: [pro]Tech Plus, offering advanced diagnostics, system integration and training; and [pro] Tech Start, which provides access to essential vehicle data and basic repair support. However, Verma stressed that quality takes precedence over scale, “we’re not chasing numbers. We’re focused on impact. The goal is to create benchmark workshops that deliver true value to the surrounding ecosystem.”

STRENGTHENING LOCAL MANUFACTURING
ZF aims to further strengthen its local footprint through targeted manufacturing and engineering investments. While it is contemplating an exclusive unit for after­market production, its Pune plant has already begun assembling shock absorbers specifically for this seg­ment. Meanwhile, its engineering centres are developing solutions tailored to the Indian market, with testing and validation carried out at ZF’s test track in Chennai. The decentralised aftermarket team, comprising over 100 professionals across the country, enable the company to stay closely connected to local market needs.

SOLVING THE SPARE PARTS PUZZLE
The growing variety of vehicle models and the rap­id pace of technology adoption have significantly increased the diversity of spare parts, making inven­tory management more complex. To address this, ZF has adopted a logistics strategy based on “inventory on the move.” This involves an optimised, tiered ware­house network supported by intelligent replenishment systems. Large, centralised warehouses handle slow­er-moving parts, while regional warehouses stock fast-moving items for quicker access. Its logistics strat­egy also includes a pan-India delivery model using feeder warehouses, smart replenishment systems, and dynamic inventory placement, ensuring reach without duplicating inventory at every location.

Today’s independent garages face new challenges, particularly with proprietary vehicle systems. ZF is developing diagnostic tools and garage solutions to help them stay relevant. With only around 8 vehicles per 1,000 people, India’s car ownership levels remain low by global standards. As the vehicle base expands, ZF Af­termarket is positioning itself not just as a parts supplier, but as a complete aftermarket solutions provider. The road ahead is challenging, but filled with opportunity.