The plant spread across 7,200 square metres at Oragadam would assemble front and rear chassis systems for BMW, the JV firm said in a statement.
The Chennai plant, the third such facility to assemble chassis systems, was part of ZF Hero Chassis System vision of producing 'low cost, high quality' products. However, the company did not disclose the investments made for setting up the plant.
ZF Hero other units are in Talegaon, Maharashtra and Halol, Gujarat.
"We at ZF Hero Chassis System are continuing our policy of being close to our customers with special emphasis on low-cost, high quality offering for global OEMs in Indian auto-market," Hero Motors Chairman Pankaj Munjal said.
"The cars rolling out of BMW Plant Chennai now have axles supplied by ZF Hero Chassis Systems," BMW Chennai Plant Managing Director Robert Frittrang said.
"Our partnership is off to a successful start and we are confident that through our partnership, we will continue to deliver best-in-class premium products in the Indian market," he said.
The Chennai-plant is part of ZF Hero's 'local-for-local' concept, where it provides customers with products produced locally or at a location close to the client.