German auto parts supplier ZF Group announced on Wednesday that it has sold a 7.5% stake in its Indian subsidiary, ZF Commercial Vehicles Control System (CVCS) India. The sale of 1,425,000 shares will help ZF Group increase liquidity and financial flexibility for growth. This move does not affect ZF’s control over ZF CVCS India.
ZF Group started the commercial vehicle control system business in January 2022 after acquiring WABCO in 2020. ZF CVCS India is a market leader in the Indian commercial vehicle supplier industry and is key to ZF’s global growth strategy. The Indian business has performed well due to a supportive market environment.
The company emphasized that it plans to keep a strong majority shareholding in ZF CVCS India. The sale will allow ZF to invest more in its growth and the expanding Indian market.
