In 2015, Bosch increased its sales in China to 11.1 billion euros (approx. $12.4 billion USD). Despite a less dynamic market environment, the supplier of technology and services achieved a nominal sales growth of some 19 percent. Adjusted for currency effects, sales were up slightly in local currency. Sales in China almost doubled as a result of the full acquisition of the former 50-50 joint ventures BSH Hausgeräte GmbH and Robert Bosch Automotive Steering GmbH.
This makes the country the second-largest market for the Bosch Group after Germany. Over the past three years, China’s share of total Bosch Group sales has increased from nine to 16 percent. Bosch says it expects a positive performance in China for 2016 as well, and sees especially strong potential in the area of connectivity.
“The Chinese market continues to offer us a wide range of business opportunities. The market for the Internet of Things (IoT) is also growing rapidly in China,” said Peter Tyroller, the member of the board of management of Robert Bosch GmbH responsible for Asia Pacific at the local annual press conference in Shanghai.
He added that this is above all thanks to the “Internet Plus” initiative for integrating the Internet into traditional industries – a major element of the Chinese government’s 13th Five-Year Plan, which aims to make China a greener, more open, more innovative and more sustainable economy. “Over the coming years, we expect China to see strong growth in demand for quality products as well as for connected solutions and services. Bosch is well-positioned for this,” said Tyroller.
“Local for local” in connectivity as well
Bosch has been present in China since 1909 and is committed to localization there. “Our ‘local for local’ strategy in China is paying off, as we can see from our sustained business success in the country,” Tyroller said. This relies on expanding local manufacturing as well as research and development. “We invested more than 750 million euros (roughly $835 million USD) in China in 2015, and we are budgeting a similar sum for 2016,” he continued. For example, Bosch will open a new plant in Wuhu this year for its Car Multimedia division. Tyroller also sees localization as a recipe for success with connectivity. This is why the Bosch subsidiaries Bosch Software Innovations, Bosch Sensortec and Bosch Connected Devices and Solutions have been present in the local market for several years. When it comes to connectivity, Bosch also relies on alliances with local partners such as Tencent, one of the biggest Chinese Internet companies. This collaboration will enable local use of the mySPIN smartphone integration solution. In addition, a team of research associates in China is developing IoT solutions that are tailored to the local market.
Increased competitiveness in China thanks to Industry 4.0
Above all, Bosch says it is in the “connected” industry that it sees huge potential in China. “We expect that the use of intelligent and connected solutions in manufacturing will play an increasingly important role in China,” said Tyroller. The key driver for this is the “Made in China 2025” initiative, which is part of the country’s “Internet Plus” action plan. In China, too, Bosch is pursuing a two-pronged strategy in the area of Industry 4.0: As a leading supplier, the company offers a range of solutions for the Chinese market in the areas of powertrain technology and automation as well as sensor technology and software.
Bosch is a sought-after software employer in China as well
Connectivity also plays an important role in the search for new talents. In 2015, 30 percent of the 5,000 Bosch researchers and developers in China were working in software development. They will be joined by another 2,500 associates in 2016. Bosch now employs some 55,000 associates in China – 2,000 more than a year ago. This makes the company’s headcount in China the biggest outside Germany.
