ZF India Pvt Ltd and Somic Ishikawa Inc. have finalized an agreement transferring complete ownership of their joint venture, Somic ZF Components Pvt Ltd, to the Japanese automotive parts manufacturer. This transaction ends a partnership that began in 1993. Financial details of the deal were not disclosed.
With this acquisition, Somic Ishikawa now fully controls three manufacturing plants in India that produce ball joints used in steering and suspension systems. These facilities cater to both domestic and international clients and are strategically located near key automotive manufacturers. Existing management teams will stay on to ensure smooth operations and preserve customer relationships.
Founded in 1993 as a joint venture between Germany’s ZF Group and Japan’s Somic Ishikawa, the company has spent over 30 years developing expertise in steering and suspension components, growing alongside India’s expanding automotive sector. For Somic Ishikawa, the full acquisition marks an important step in strengthening its foothold in the Indian market, which the company sees as a key growth area. The firm intends to build on the joint venture’s technology, client base, and operational knowledge to boost its position locally. Kaname Saito, Managing Director of Somic Ishikawa, emphasized India’s importance in the company’s global business plans.
ZF Group will continue to support the joint venture by licensing technology and providing design assistance to ensure uninterrupted product supply. The sale fits into ZF’s broader portfolio optimization efforts, allowing the company to focus on its core business sectors while maintaining a presence in India’s chassis systems market. Akash Passey, President of ZF Group India, said this move lets the company concentrate on larger chassis solutions and adapt to evolving market and technological trends within the Indian automotive industry.
This transaction reflects a wider trend in the automotive supply chain where companies are restructuring partnerships to improve efficiency and respond to shifting market dynamics. India’s automotive industry remains a major investment hub as manufacturers tap into the country’s growing domestic demand and export capabilities.
Both ZF India and Somic Ishikawa expect the transition to be seamless, with no disruption to customer service or deliveries. The deal also secures jobs at all three Indian manufacturing sites while allowing both companies to pursue their strategic goals in India’s automotive market.
