In August, ZF Friedrichshafen AG signed a letter of intent with the government of Telangana to set up a new technical centre in Hyderabad. The new technology centre will be dedicated to electronics, embedded software and mechanical engineering, and it will support ZF's global development teams, while enabling the company to accelerate local product development supporting ZF automotive and non-automotive operations and customers in India.

According to the company's press release, ZF’s first technology centre in India will be fully operational by 1st 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. Further, 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. Ms. Mamatha Chamarthi, senior vice president and executive lead for the new India Technology Center (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 favorable for setting up the first technology center for ZF in India."

Welcoming the new investment by ZF in the state of Telangana, Mr. K. T Rama Rao, Hon’ble Minister for IT, MA & UD, Industries & Commerce, Government of Telangana, said: "We look at this investment by ZF as an ecosystem builder for Hyderabad. We have unveiled our IT Policy - 2016 for the State of Telangana along with several sectoral policies earlier this year and our Government will be working with ZF to evolve a comprehensive Engineering Services Policy for aggressively promoting the sector. We look forward to ZF expanding in the city and I assure them all the support."

Mr. Jayesh Ranjan, Secretary, Information Technology, Electronics & Communications Department, Government of Telangana, also added, "We are pleased to have ZF choose Hyderabad to establish its first ever Technology Development Center in India. With a company like ZF, an industry leader in the sector, establishing one of its largest Engineering Services/ R&D centre in Hyderabad, will make Hyderabad yet another important hub."