WABCO Asia's shareholding in ZF CVCS India was noted to have decreased from 67.49% to 63.17% following the transaction. In its filing to stock exchanges, ZF Group explained that the sale aimed to enhance financial flexibility to support its growth plans. The company emphasised that the transaction would not affect its control over ZF CVCS India, reaffirming its long-term strategy to retain a solid majority shareholding in the subsidiary.

ZF Group also stated that the divestment, involving the sale of 8.2 lakh shares, was intended to increase liquidity and provide the financial resources needed for further growth, particularly in the rapidly evolving Indian market. ZF CVCS India, described as a market leader in the country’s commercial vehicle supplier sector, was highlighted as a crucial element of ZF’s global expansion strategy.

The Friedrichshafen-headquartered firm noted that it had entered the commercial vehicle control system business in January 2022, following its acquisition of WABCO in 2020. The transaction was portrayed as a move to strengthen ZF’s financial position while enabling continued investment in both the company’s growth and the dynamically developing Indian market.