Looking forward to the Chinese market, Bosch insists on localization
From auto parts to power tools, Bosch's product network in China has officially opened. Recently, Bosch Power Tools (China) Co., Ltd. has launched a tour with the theme of "Powerful Bosch Technology" in 14 cities including Shanghai, Hangzhou, Beijing, Guangzhou, Wuhan, Chongqing and Tianjin. Shi Weifang, regional director of sales for Bosch Power Tools China Ltd., stated that after restructuring into a wholly owned company, Bosch Electric has accelerated the construction of its sales and service team.
After its recent expansion, the factory in Hangzhou has an area of ​​more than 35,000 square meters and will establish a 5,000 square meter product training center in the Asia Pacific region.
According to report, as of 2005, Bosch Group's total investment in China was approximately 620 million euros. From 2006 to 2008, the Bosch Group plans to double its investment in China. In the past five years alone, the number of Bosch manufacturing companies in China has doubled from 10 to 20.
Peng Deyuan, President of Bosch (China) Investment Co., Ltd., said that Bosch ranked 83rd in the "Fortune 500" in 2005, and its global sales was 41.5 billion euros. Of these, 75% of sales come from outside Germany. "In this 41.5 billion euros, there are 23.1 billion euros from the automotive industry." According to reports, Bosch mainly involves the control of gasoline, diesel, chassis systems, as well as body systems, automotive multimedia, automotive electronics.
In addition to production, Bosch also places great emphasis on its localization strategy in China. “Only local research and development and innovation can guarantee the needs of customers, otherwise it will not be successful. The localized engineering research model can be found in the global Bosch company.†Peng Deyuan said. He said that China's production costs are relatively low, so it is very attractive to international companies. "To succeed in China, we must speed up localization. In terms of localized production, we must adapt to China's price level while developing some of our own suppliers in China."
Bosch's first technology R&D center in China was established in Shanghai in 1997. The center can now provide a new fuel injection system to meet the needs of local Chinese customers. “We know that many people in China currently like to buy small cars and low-energy cars, and our R&D center can provide these customers with fuel injection systems that are suitable for small cars. It can both protect the environment, save costs, and reduce the use of fuel. ."
Peng Deyuan believes that the most urgent task at present is how to reduce costs and increase the cost-effectiveness of products. For this reason, Bosch actively establishes local procurement channels and gradually shifts its procurement focus to the Chinese market. According to reports, the Bosch Group plans to purchase 18% of the Chinese market this year; by 2013, more than 80% of raw materials will come from Chinese domestic suppliers. Peng Deyuan said that China is expected to become the largest procurement base and production base of the Bosch Group. The Group will also establish channels to sell auto parts products from China to Europe and the United States.
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