BOSCH Group said yesterday it plans to almost double its investment in China within three years by expanding capacity and strengthening its research and development capability.
The world's leading auto parts supplier will invest 850 million euros (US$1.4 billion) in China from this year to 2010, according to Rudolf Colm, head of the Asia Pacific region for Bosch Group.
Bosch has invested in four technical facilities, a winter test ground and more than 20 manufacturing locations in China for its automotive, consumer products and building tools division, totaling 1 billion euros by the end of last year.
The Stuttgart, Germany-headquartered Bosch said it will spend the money not only on its current core business but on new technologies such as gasoline direct-injection systems, turbo charging and hybrid parts.
All of the products are expected to be in stronger demand in China, the world's fastest growing auto market, considering the tightened emission standards and growing consciousness of energy saving and road safety, according to Peter Pang, president of Bosch China.
The aggressive investment initiatives came after Bosch received sales revenue of 18.3 billion yuan (US$2.6 billion) in China last year with a growth of 41 percent from a year earlier.
Nearly half of the revenue was generated by its automotive division.
"Growth in China was not only the highest in terms of percentage but also in the actual volumes," Colm said.
"Without localization, not only of management, not only of machinery and investment, but also especially parts, we couldn't reach the necessary cost level required by the Chinese market and have the real growth."