Bosch betting own brand

In 2008, Bosch's sales in China are expected to reach about 2.3 billion euros (about 25 billion yuan), a 30% increase from the previous year. This is the number announced by Mr. Franz Fehrenbach, Chairman of the Bosch Group, at the press conference in Beijing on October 13, 2008. This is also Bosch's fourth consecutive year of such substantial growth in China. He also said: "China will continue to be the main driving force for our growth in the Asian market. In line with China's sustainable development goals, Bosch Group's innovation focused on resource conservation and energy efficiency has broad scope for development."


As the fastest-growing automobile market in recent years, China's own brand cars have always been the target of parts suppliers, and Bosch, the world’s largest component manufacturer, will not let this “sweet potato” pass. Under the background of the current global economic crisis in the automotive industry, the days of self-owned brand cars are no longer good enough. It is not the best policy to hold a team for the winter. At this time, it has become particularly important to cultivate the brand's own core competitiveness. Some experts pointed out that this economic crisis has brought more opportunities for self-owned brand cars in addition to the cold winter. It has always been considered as a low-cost, low-quality brand. The automobile is also an excellent opportunity to face this economic crisis, and the price advantage is no longer there. "The quality of success in the future" has been mentioned by more and more people. At present, self-owned brand cars have made great progress in manufacturing level and assembly process. The idea of ​​leasing to sea has also been questioned by many people. Technical problems are not completed overnight. Compared to the European and American auto industry over a hundred years Historically, Chinese auto companies still have a long way to go.

Safety issues have always been the biggest criticism of self-owned brand cars. China, the world’s highest traffic accident rate country, is also making the greatest efforts in car safety. ABS and ESP, which are standard safety devices in European and American countries, are already Many self-owned brand cars saw their shadows. In the November 2008 auto brand auto car model selection, most of the short-listed models were matched with ABS, and some even had ESP installed, and these were also favored by the judges. The eyes of consumers are increasingly critical, and ESP has become the security trend of the future.

Currently, the ESP installation rate for low-cost self-owned brand cars is very poor. Only a handful of cars are equipped with ESPs. In 2008, the installed rate of domestic car ESPs was only 7%, as more and more consumers already have awareness. To the importance of security protection, the installation of ESP is a general trend. Many auto manufacturers are ready to go, and even have a dark degree. For Bosch, the next step is to do the scale of the Chinese ESP market on the basis of ensuring market share. Big. The completion of the Yakeshi winter test field undoubtedly laid the foundation for this goal. Dr. Schwiner, president of Bosch Chassis Control Systems, said that with the promotion of Bosch, China's ESP assembly rate is expected to reach 18% by 2012. The main method for Bosch to expand ESP on a large scale is to reduce costs and selling prices. According to the reporter, a new vehicle model must be equipped with ESP, ESP and concept design, system development, and match testing. The vehicle manufacturer needs to pay about several million to tens of millions of yuan, and it will be due to technical requirements, matching time, The difference in the condition of the vehicle has increased. Among the ESPs made by Bosch for a vehicle model, the average matching cost is about 2 million yuan. This is a good news for self-owned brand companies that are constantly increasing revenue and reducing expenditure.

However, Bosch stated that it is developing some lower-cost ESP systems to adapt to different grades of cars on the market. The company's 9th generation ESP, which will be launched into the market in 2011, will also be more cost-effective.

In 2008, Bosch chassis established an ultra-flexible production line and wire harness production line in Suzhou's industrial park, adding two wheel speed sensor production lines. At present, the Yakeshi winter testing center has begun to match the ESP, its localization rate of ABS, TCS and ESP in China is about 60%, and will increase to 90% in 2010. With the increase in the degree of localization and the expansion of market size, ESP costs will decline.

On November 28, 2008, the Bosch Chassis Control System announced the official completion of its Bosch (Hulunbuir) Automotive Testing Technology Center built in Yakeshi, Inner Mongolia Autonomous Region. This test center provides automotive industry safety testing in cold climate conditions for host manufacturers in China and Asia Pacific. The test center will mainly provide matching testing services for ABS, ESP, and TCS. It will also be used for future system testing such as CAPS (integrated active and passive safety system) and VDM (vehicle dynamics management system). Local companies obviously have confidence in the establishment of this testing ground. The inauguration ceremony of senior leaders of the hippocampus and BYD Auto at the testing ground is the best proof.

With the acceleration of Bosch Winter Automotive Testing Center's opening and the localization of R&D, Bosch’s strategic intention in China has become apparent again. In the future, Bosch's major growth points in China and even in the Asia-Pacific region will be attached to Chinese auto brands. . At the Yakeshi Winter Testing Center, the reporter saw several self-owned brand cars that have begun to do ESP matching tests. Dr. Schwiner, president of Bosch Chassis Control Systems, said that the 2008 Winter Test Center has initiated cooperation projects with several local host companies. About 40 engineers will participate and some projects will have come to an end.


Yakeshi Winter Automotive Testing Center invested RMB 150 million, which was completed in three years. The lake test area covers an area of ​​1.32 million square meters and the land test area covers an area of ​​540,000 square meters. It will be Bosch's global footprint. The largest test site with the largest investment, highest technical standards and the highest technical standards can undertake more than 80 test items each year. As a monopolist in the domestic ESP industry, this pattern will not change in the coming years. In other words, almost all self-owned brands will become potential customers of Bosch. All indications indicate that Bosch’s strategic focus in the Asia-Pacific region has been biased towards China, and it is the potential of China’s own-brand vehicles that has caused Bosch to focus on this. As a pioneer and leader in active safety technologies in the industry, Bosch pioneered the development of ESP as early as 1995. This type of vehicle, which is known as the best safety device after safety belts, has not been popularized due to its high cost. In 2008, 34% of vehicles under 6 tons were installed with ESP. According to the authoritative organization, one out of every two vehicles will have ESP installed in 2012. In 2007, the number of vehicles equipped with ESPs in passenger cars newly registered in Europe exceeded 50% for the first time, an increase of 7% year-on-year. The installation rates in Japan and South Korea were 33% and 11%, the United States was 56%, and China was only 3%. This number will continue to grow in the coming years. The United States has already stipulated that in 2009 all new factory cars must be equipped with ESP. The European Commission also proposes a mandatory standard ESP for all vehicles: from 2012 all new models, all cars will be mandatory for ESP in 2014. At present, the German ESP has a new equipment rate of 79%. Herbert Heming, executive vice president of Bosch Chassis Control Systems, told reporters: “In fact, only one fifth of the vehicles on the European road in 2007 were equipped with ESP, in order to increase the number of vehicles as much as possible. The ESP assembly ratio needs to be applied more to small vehicles.” As the world’s largest ESP supplier, Bosch now has an absolute leading position in the Chinese ESP market with a market share of over 50%.

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