ZF Friedrichshafen has signed a Letter of Intent (LoI) with the government of Telangana to set up a new technical centre in Hyderabad, the first of its kind for the ZF Group in India.

The new centre will be dedicated to electronics, embedded software and mechanical engineering and will support the supplier's global development teams while enabling the company to accelerate local product development supporting automotive and non-automotive operations and customers in India.

The centre will be fully operational by 1 January 2017 and is expected to have a work force of 2,500 engineers by 2020 including the 1,000 engineers who are currently working with ZF. The company also has an existing team of mechanical engineers based in Pune and Coimbatore to address the local market requirements of automotive and non-automotive OEMs.

Mamatha Chamarthi, head of the new India Technology Centre (ITC) said: "India offers a huge, technologically competent talent pool which aligns with the growing demand from our customers for advanced software, electronics and mechanical engineering. Access to this diverse talent base coupled with a progressive local government and robust infrastructure has made Hyderabad favourable for setting up the first technology centre for ZF in India."