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Bosch compact Facts on Bosch activities in the Asian growth markets Focus on China, India, and Southeast Asia

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  • July 03, 2013
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press release

Asia at a glance: a success story for Bosch
Over the past ten years, Asia Pacific's share in total Bosch sales has risen from 13 to 24 percent. In the medium term, Bosch wants to generate 30 percent of its sales in Asia Pacific, while also seizing growth opportunities in other markets. With developments remaining dynamic, the main focus of capital expenditure, as well as of most of the new jobs created, will be in Asia Pacific, and above all in China, India, and Southeast Asia.

Development of business: Asia is a success story for Bosch. Within five years, sales in Asia Pacific have increased by 60 percent, from 7.8 billion euros in 2008 to 12.6 billion euros in 2012. Over the medium-term, the company expects average annual growth of 8 percent in the region.

Associates: A total workforce of 75,000 works for Bosch in Asia Pacific in the four business sectors Automotive Technology, Industrial Technology, Consumer Goods, and Energy and Building Technology.

Capital expenditure: Between 2010 and the end of 2013, Bosch will invest some 2.8 billion euros in further expanding and localizing manufacturing and engineering.

Research and development: Bosch currently employs some 13,800 researchers and developers in Asia – 2,200 more than one year ago and five times as many as five years ago. Bosch wants to double this number by the end of 2020.

Apart from local manufacturing, Bosch is increasingly also turning to local engineering. The focus is on products tailored to the respective local markets. To give some examples from China: an especially cost-effective control unit for restraint systems such as airbags has been developed there, as well as the T-Edition range of power tools designed especially for the requirements of Chinese tradespeople. In India, an ABS antilock braking system has been developed for two-wheelers. Moreover, locally developed products complement the products on offer in established markets: a common-rail injection system developed in-house for Indian diesel vehicles has also proved suitable for small vehicles in other countries.

Presence: Bosch can look back on a long tradition in Asia. The company has been present in China since 1909, and in Indonesia since 1919. The year 1922 saw the start of sales activities in India, with Singapore, Malaysia, and Thailand following just one year later. Today, Bosch has manufacturing operations at 62 locations in 16 countries in Asia Pacific.

China: a success story spanning many years
With average annual sales growth of 25 percent over the past ten years, China has played a significant role in the Bosch Group's growth. The country is now the company's third largest market after Germany and the U.S., and continues to offer excellent opportunities for growth. For example, Chinese customers are increasingly demanding safe, clean, economical, and comfortable cars. Even now, every fifth passenger car made in China has ESP on board. By 2015, this will be every third passenger car.

Development of business: In 2012, Bosch generated sales of 5.1 billion euros in China. Bosch is the largest automotive supplier in the country. And Bosch is the market leader in China in other areas of business, such as mobile hydraulics or power tools. Bosch expects to achieve double-digit growth in China in 2013.

Associates: At the beginning of 2013, Bosch employed some 34,000 associates in China. Over the next three to five years, this figure is expected to rise to 50,000. At the start of 2013, some 3,200 associates were working in research and development at a total of 17 Chinese locations.

Expansion in the west: Western China is growing in importance as an economic region. Bosch aims to have all its divisions located there. For this reason, it is significantly expanding its presence in the west of the country. Three new plants are currently being built in Chengdu. The plant for automotive technology will be opened at the end of July 2013. The Power Tools and Packaging Technology plants will be completed in 2014.

Further expansion: In June 2013, Bosch opened a new test circuit in Donghai, at a total investment of some 70 million euros. It will be used to test safety systems such as the ABS antilock blocking system and the ESP® electronic stability program, as well as driver assistance systems. Bosch has also invested roughly 120 million euros in a new Automotive Aftermarket plant in Nanjing. It has been producing spark plugs, brake pads, and testing and diagnostic equipment for the repair shop market since March 2013. The location also serves as a research and development center.

India: challenging market with potential
Even if the recent drop in unit sales of cars suggests that the next few years will involve some challenges, India will also play an important role in Asian development in the future. The country is increasingly becoming a technological center for the automotive industry. Bosch is the largest automotive supplier in India. The country remains an important market for Bosch, and for commercial vehicles and agricultural machinery as well.

Development of business: In 2012, Bosch generated sales of 1.5 billion euros in India, 1.6 percent more than in 2011. Over the medium-to-long term, the company expects stable growth in the region.

Associates: At the start of 2013, the company employed some 25,000 associates in India, roughly 12,000 of them at its largest software engineering center outside Germany.

Investments: In the first half of 2013, Bosch has invested some 40 million euros in a new location of its subsidiary Bosch Rexroth in Sanand, and roughly five million euros in establishing a manufacturing facility for automotive components in Chennai.

Southeast Asia: developing and entering new growth markets
The planned creation of the ASEAN Economic Community, or AEC, in 2015 will give rise to a barrier-free common market with a total population of 600 million people, making it larger than the EU with its roughly 500 million people. With a combined population of roughly 80 million, a good geographical position, and a wealth of natural resources, promising new markets such as Laos, Cambodia, and Myanmar offer huge economic potential. Bosch has had agencies in Laos and Cambodia since 2012 and in Myanmar since 2013.

Sales revenue: Currently, Southeast Asia is the fastest growing region for Bosch, with sales growing by 30 percent to more than 700 million euros in 2012.

Associates: At the start of 2013, Bosch employed some 5,500 associates in nine Southeast Asian countries. This rapid development is expected to continue. For example, the software engineering center in Vietnam intends to take on a further 500 associates over the next three to four years.

Capital expenditure: Further expansion planned: capital expenditure of some 230 million euros between 2011 and 2013. Examples: first manufacturing facility in Indonesia – at first primarily for local Japanese automakers. Total investment of some 10 million euros. In Vietnam, Bosch intends to invest 55 million euros by 2015 in the production of push belts for use in continuously variable transmissions.

Footage (download-links):

China:
http://videoportal.bosch-presse.de/startseitestartseiteen/clip/_/na/var/bosch-china-investment-ltd-diverse-geschaeftsbereiche

Indien:
http://videoportal.bosch-presse.de/startseitestartseiteen/clip/_/Ban/na/bosch-ltd-bangalore

Singapur:
http://videoportal.bosch-presse.de/startseitestartseiteen/ihr-suchergebnis?search[term]=Singapore

The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). The company generated sales of 70.6 billion euros in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing and sales network covers some 150 countries. The basis for the company’s future growth is its innovative strength. Bosch employs 55,800 associates in research and development at 118 locations across the globe. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”

The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

Additional information is available online at www.bosch.com and www.bosch-press.com, http://twitter.com/BoschPresse.

PI8190 - July 03, 2013

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