Cars

Bosch plans to invest $520m

By Li Fangfang (China Daily)
Updated: 2011-04-21 11:09

A Bosch booth at a show in Shanghai. The company's automotive business in China achieved sales of $3.6 billion in 2010.[Photo / China Daily]

SHANGHAI - The Bosch Group, a leading global supplier of automotive technologies and services, plans to invest 3.4 billion yuan ($520 million) to capture more businesses in the Chinese market this year.

"Over the past four years, we have achieved an average annual sales growth of 30 percent in China," said Franz Fehrenbach, chairman of the Bosch board of management.

Related readings:  Bosch plans to invest $520m  Bosch gearing up for another boom  Bosch to see double-digit sales growth in China  Bosch continues policies of visionary founder

"The growth has been accompanied by a continued investment in expanded business presence, research and development of facilities and local talents. Thus we will invest some 3.4 billion yuan this year to strengthen our leading position here in China," said Fehrenbach, who came to Shanghai on Wednesday to inaugurate Bosch's new China headquarters.

He also said his company intends to almost double its personnel in China from the current 26,000 people to 50,000 by 2015.

In 2010, all three of Bosch's business sectors in China showed strong growth. Its automotive technology division increased sales by 38 percent, industrial technology grew by 45 percent and consumer goods and building technology recorded 21 percent growth from the previous year.

"Our automotive business here achieved sales of 23.3 billion yuan in 2010, further underlining our pillar position in China," said Chen Yudong, president of Bosch (China) Investment Ltd.

"In the fast-changing Chinese automotive market, Bosch will make even greater efforts in localization to better meet the varied needs of Chinese consumers," said Chen.

"Bosch will continue to assist domestic automakers in innovation, especially in the areas that are critical to future development, including e-mobility, energy saving and emission reduction, as well as driving safety."

Chen also told China Daily that he believed an approach to diversified automotive powertrain solutions is the best for the Chinese market.

"At present, Bosch has already established a complete product portfolio for hybrid and electric powertrains. We hope our world-leading technical support and experience can help Chinese manufacturers to offer affordable new energy vehicles," said Chen.

Last year, via its joint venture unit, United Automotive Electronic System, Bosch initiated two new energy vehicle technology projects.

The implementation of these two projects will propel local production of key parts for hybrid and electric vehicle technologies in 2012, and new energy vehicles equipped with Bosch's technologies will be mass produced in 2013.

Rudolf Maier, general manager and vice-chairman of the board, Bosch Automotive Diesel System, said that Bosch will kick off a marketing campaign of diesel usage for passenger vehicles from the second half of this year.

"Public perception about the diesel car is changing significantly in China," said Maier. "With the introduction of advanced clean diesel technology and continual promotional activities, more consumers will recognize the economical, clean and powerful performance of diesel in cars."

"The development of the diesel passenger car in Europe can serve as a reference for the Chinese auto market," said Liu Zhigang, chief executive officer of Chinese automaker Haw Tai Motor.

"Since the popularization and adoption of e-mobility will take time, diesel is a practical solution that helps meet national goals of energy conservation and emission reductions."

?