Chinese Car manufacturer according to the world’s largest supplier Bosch build more production in Europe in the coming years. Manufacturer (OEM) that from China Those who wanted to import would also have to build factories in the target market in order to be successful, explained Bosch boss Stefan Hartung (58) on Thursday. “We will see the first projects from Chinese OEMs in Europe in the next few years.” Bosch will do so Auto supplier and industrial plant engineers.
It is already known that BYD from China wants to set up production in Hungary. Leapmotor has teamed up with the Opel mother Stellantis allied to use their work in Tichy, Poland. Chery wants to enter into a joint venture with the Spanish manufacturer EV Motors in a former Nissan-Factory in Barcelona building cars.
In response to criticism that the German auto industry is too dependent on China, Hartung pointed out that China is also an important sales market for Germany and Europe. “Mutual dependence isn’t that bad,” said the Bosch boss. “One-sided dependence would not be so beneficial.” But doing something about it should not lead to an economy becoming isolated.
Bosch sees great potential in India, which is already the third largest car market in the world. Steep growth is to be expected here, even for cars in higher price segments than the small cars common there, explained the head of the Mobility auto supply division, Markus Heyn. “As in China, the market shares of Indian OEMs are increasing.” They could apparently best adapt to the wishes of domestic customers.
Weak global economy clouds Bosch’s outlook
Because of the slow ramp-up of e-mobility and the tense economy, the technology group is holding its own Bosch back with the annual goals. “The markets are developing with delays – that is the case with electromobility, it is no different with hydrogen and heat pumps,” Hartung continued at the annual press conference on Thursday. We continue to see great growth opportunities in these areas. But 2024 remains challenging.
The world’s largest automotive supplier – which also sells household appliances, power tools and heat pumps – wants to increase its sales by 5 to 7 percent this year. The forecast is therefore more cautious than in the previous year. This is also because no significant tailwind is expected from the global economy, said Bosch CFO Markus Forschner.
In the first three months of 2024, the group’s sales even fell slightly compared to the previous year. When it comes to profitability, the signs point to stagnation: Forschner sees the company at most at the level of 2023.
As already known, last year the group generated sales of around 91.6 billion euros and adjusted earnings before interest and taxes (EBIT) of 4.8 billion euros. This required the use of all forces, Hartung said earlier in the year. The bottom line was that around 2.6 billion euros remained – significantly more than in the previous year. The return – in this case the share of operating profit in sales – was 5.3 percent.
Sales fell in the first quarter
It is an important core figure for the group, which currently has to manage its financial resources in order to be able to cope with change in various areas on its own. Bosch has to radically reorganize its business and is investing billions to do so – including in the areas of e-mobility, hydrogen, chips and heat pumps. However, it will probably be some time before the investments pay off.
Bosch wants to achieve a return of at least 7 percent in 2026 – two years later than planned. According to Hartung, this is necessary in order to be able to invest aggressively in future technologies, for example for climate protection.