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5. Bosch (China) Business Report FY ended Dec. 2016

Bosch (China) Business Report FY ended Dec. 2016

Business Overview

-In recent years, the Company has been expanding its activities in the development and manufacturing of products specifically designed for the Chinese market and conducting these activities locally in China.

-The Company conducts its business in the following areas: diesel engine systems, gasoline engine systems, automotive electronics systems, electric drive systems, and chassis systems.

Recent Development

-Geely Bo Yue that is equipped with Bosch's new AB12 airbag ECU has obtained a five-star safety rating in the third China-New Car Assessment Program (C-NCAP）2016, which is run by the China Automotive Technology and Research Center. The Bo Yue became the first model to break the SUV crash-rating record after the new N-CAP 2015 version was implemented. The airbag ECU used in the Bo Yue is the first of its kind developed in China and mass produced for the global market. Compared with the former generation products, the new ECU offers higher levels of chip integration and operating speeds. With acceleration sensors in the front and on the side, the ECU can precisely control the airbag deployment and belt pretensioners to reduce impact and prevent impact-caused injuries during collisions. (From a press release on October 28, 2016)

-In September 2016, Bosch Huayu Steering Systems Co,. Ltd. (previously called ZF Shanghai Steering) produced its first EPSapa axis parallel steering system for Shanghai GM. Mass production of this system is expected to begin at the end of 2016. (From a press release on October 14, 2016)

-Robert Bosch Motor (China) Co., Ltd., a wholly owned subsidiary of Bosch Group (China), began operations in the Changsha National High-Tech Industrial Development Zone on August 1, 2016. The subsidiary was established in April 2016 to develop and produce starter motors and alternators. Prior to the establishment, Bosch China produced starter motors, alternators, and electric drivetrain systems at two facilities: Bosch Automotive Products (Changsha) Co., Ltd. and Bosch Automotive Components (Changchun) Co., Ltd. (From news releases issued by multiple sources on August 3, 2016)

-In July 2016, Bosch Group (China) began constructing a car multimedia plant in the Jiujiang Economic and Technological Development Zone, Wuhu. A total of USD 30 million will be invested in this facility, which will be located on a 61,333-square-meter-plot. The facility will develop, produce, and sell automotive instrument meters, navigation systems, and connecting control units, and will also offer related services to customers. Sales at this plant are expected to reach CNY 8 billion in five years after full-scale production begins. (From news releases issued by multiple sources on July 14, 2016)

-Robert Bosch GmbH announced that sales of Bosch in China reached CNY 77 billion in 2015, almost double those in 2012. China's share in Bosch's global sales has climbed from 9% to 16%, making the country the group's largest market outside Germany. With more than 55,000 associates, China also employs the Bosch Group's largest workforce outside Germany. Over the last ten years, Bosch in China achieved a compound annual growth rate of over 22 percent. It invested CNY 5.2 billion in the market in 2015 alone, and is intending to continue investing in the market. (From a press release on May 16, 2016)

Strategic Cooperation

-Bosch Automotive Diesel Systems Co., Ltd. and Anhui Hualing Automobile Co., Ltd. signed an agreement to collaborate on developing products that meet the China VI emissions standard. Anhui Hualing will develop its Hanma engines by using Bosch’s high-pressure common rail systems and aftertreatment systems, while following Bosch’s roadmap for exhaust gas recirculation (EGR) systems, diesel oxidation catalysts (DOC), diesel particulate filters (DPF), selective catalytic reduction (SCR) system, and acceleration slip regulation (ASR). According to Anhui Hualing, its CM6D30 60 Hanma engine (China IV standard) with Bosch’s newest High Power Density (HPD) engine brake offers an over 50% greater braking power than previous engines, while contributing to a 5% reduction in fuel consumption. Anhui Hualing has already sold 7,800 Hanma engines since January 2016. Its annual sales for the engines are expected to reach 20,000 units in 2017. (From news releases issued by multiple sources on November 3, 2016)

-Bosch Automotive Diesel Systems Co., Ltd. announced that it had signed a basic agreement with Anhui Quanchai Engine Co., Ltd. to set the framework to enter into a full-scale partnership. Their areas of partnership will include engine fuel systems compliant with the China V or stricter standards, diesel exhaust aftertreatment systems that meet the China V or higher standards, and engine fuel systems that meet the China III or higher standards. The company expects the collaboration will accelerate the development and sales of high-end diesel engines for the Chinese market. (From a press release on January 25, 2016)

-The Group announced that Bosch Engineering Technology Co., Ltd. and CH-AUTO Technology Co. Ltd. have signed an agreement to form a strategic partnership to collaborate on the development of electronic stabilizer programs for CH-Auto’s Event. (From news releases issued by multiple sources on January 19, 2016)

Awards

-United Automotive Electronic Systems Co., Ltd., a subsidiary of the Bosch Group, announced that it won the following awards from OEMs in 2016.

• Geely Automobile's Excellent Supplier Award for 2016;
• Excellent Supplier Award from Beijing Automotive Powertrain Company Limited and the Wevan division of Beijing Automobile;
• Excellent Supplier Award from GAC Fiat Chrysler;
• Excellent Supplier Award from Dongfeng Liuzhou Automobile.

R&D Facility

-The Company has cutting-edge technical centers in Shanghai, Wuxi, Suzhou, Donghai, Chongqing and Changsha to serve the Chinese market. The Company is active in hiring local engineers in order to quickly respond to demand from Chinese customers.

-In November 2008, the company opened its winter proving-ground in Yakeshi, Inner Mongolia.

-United Automotive Electronic Systems Co., Ltd. in the Bosch Group announced that the company and Great Wall Motor have jointly established a development center on the premises of Great Wall Motor’s Haval R&D center in Baoding, Hebei Province. (From a press release on June 30, 2015)

Technical Center

Testing Center

ECU solution

Source : China Automotive Industry Yearbook          

Source: China Automotive Industry Yearbook