Bosch is Planning to Invest USD119 Million Over Next Few Years in India

The renowned German multinational auto component manufacturer to invest heavily in India

India: The auto component giant, Bosch, is planning to invest up to USD119 million, annually over the course of next few years, as the company plans to develop its headquarter based in Bengaluru into a modern technology park and would further phase out the current manufacturing operations to another location.

"If you look at the Bosch India story, in the last five years, we have been investing anywhere between USD97 million to USD134 million annually," Bosch MD Soumitra Bhattacharya said in an interview, "I anticipate that the trend of our capex we have had will continue for the next few years and that is between USD97 million to USD134 million per annum. It will, however, be dependent on the business conditions and may vary accordingly," he further added.

Moreover, the group is moving its manufacturing unit from Bengaluru to Mysore. The company considers India and China as prominent locations for its operations in the Asia-Pacific region.

"If you look at Bosch's global turnover, Asia-Pacific contributes 28 per cent of the global turnover and this is the fastest-growing region in Bosch's world. Within that, the biggest chance of growth in future is China naturally and also India," Bhattacharya said.

As per TechSci Research, the investment made by Bosch is anticipated to further expand the company’s product portfolio in the country, which would further assist the company to boost its market share in the country’s automotive components market.

According to a recent report published by TechSci Research, “India Automotive Components Market By Vehicle Type, By Demand Category, By Component Type, Competition Forecast and Opportunities, 2011 - 2021”, automotive components market in India is estimated to cross US$ 44 billion in 2016. Passenger car segment accounted for the largest revenue share in the country’s automotive component market in 2015. The segment is anticipated to grow and maintain its dominance over the next five years as well, owing to increasing sales and expanding fleet size of passenger cars.