German auto parts maker Bosch Automotive Group plans an investment in the next three years to expand production capacity and research and development facilities.
Bernd Bohr, chairman, Automotive Group and Member, Board of Management of Robert Bosch GMBH, and V K Viswanathan, MD of Bosch Limited & President Bosch Group India, at the company’s stall at Auto Expo 2012 (PTI)
The company will build new plants in Chennai and Ahmedabad, besides expanding existing facilities at Nashik and Jaipur, Bernd Bohr, chairman, Bosch Automotive Group, said on Wednesday.
The investments are being made from internal cash flows, Bohr said.
At present Bosch has 13 factories in India making auto parts that include common-rail systems for passenger cars and electric power steering systems. It also has four development centres for engineering and technology solutions.
The company also plans to invest €50 million (around Rs 340 crore) to support research at universities in India, China, Germany and the US over the next 10 years. Around €23 million of this will be spent in India.
“Bosch will have to invest this much as it needs to upgrade its technologies in synchronization with manufacturers,” said an analyst with a Mumbai based research firm who did not want to be identified. “Looking at the huge market in India, in the coming four to five years this figure can grow.”
Bosch is developing affordable technologies, with a focus on fuel economy, for the Indian market. “We have successfully brought several low-cost products to the market and our ZF Steering Systems joint venture recently entered into an agreement to supply Tata (Motors Ltd) with locally produced electric power steering systems for several vehicle models,” he said.
The company is bullish on the Indian auto industry. It expects the number of cars per 1,000 people to treble to 35 by 2025. It forecasts vehicle production in India to grow over 10% in 2012.
In contrast, the global automotive production this year is expected to grow between 3% to 5%, according to Bosch’s estimates. The company expects India sales to exceed Rs 11,000 crore in 2011, a growth of 20% over a year earlier.
Exports from India are expected to cross the Rs 1,000 crore mark in 2011 and will register a double-digit growth in 2012, the company said.
moulishree.s@livemint.com