Bosch eyes double digit growth in FY24 driven by premium vehicles

Rising income levels and an increased focus on value-driven factors are driving growth in the categories of scooters, premium motorcycles, and SUVs

Bosch Ltd, the Indian subsidiary of the German automotive supplier, Bosch Group, is projecting double-digit growth in FY24. This optimistic outlook is fuelled by a shift towards premium vehicles and an industry-wide pivot to cleaner fuel options and electrification in the Indian automotive sector.

“Embracing change is crucial and we are prepared to harness technological advancements to meet evolving consumer preferences,” said Guruprasad Mudlapur, managing director of Bosch Ltd and president of the Bosch Group in India. “With India emerging as a promising market, and our focus on green hydrogen and innovative automotive offerings, Bosch is well-positioned for growth and success in the upcoming year.” Rising income levels and an increased focus on value-driven options are spurring growth in the scooter, premium motorcycle, and SUV categories.

Bosch Ltd reported a net profit surge of 22.5 per cent to ~409 crore, supported by a 17.3 per cent rise in total revenue to ~4,158 crores during the first quarter. This growth was primarily driven by increased sales of Exhaust Gas Temperature (EGT) components in both passenger cars and the commercial vehicle sector, outpacing the market. The Powertrain Solutions business posted a growth rate of 12.5 per cent over the same quarter of the previous financial year, outperforming the overall automotive market. 

Consequently, product sales in the automotive segment increased by 13.6 per cent.

Although supply bottlenecks persist, the company reported an easing in the global semiconductor supply situation over recent months. "The softening of demand due to the global economic crisis has facilitated a better distribution of semiconductor supplies worldwide. Consequently, the two-wheeler business has witnessed a significant sales recovery, with an impressive growth rate of 42.8 per cent compared to the same quarter last year," Bosch stated.

 The Beyond Mobility business, propelled by ongoing growth in consumer products and substantial government infrastructure investments, recorded a 21.5 per cent increase in net sales over the same quarter of the previous financial year.

 "Cleaner fuels, green hydrogen, and electrification are at the forefront of our commitment to a climate-neutral future. By early 2024, Bosch India will unveil the BS6 stage 2 hydrogen engine truck," Mudlapur declared.

 Reflecting on the outlook for the upcoming fiscal year, Mudlapur expressed, "Bosch is ready to embrace the transformative changes on the horizon. This is exemplified by the successful launch of our first hydrogen-powered demonstrator vehicle in India in June 2023, following the announcement of our pilot Hydrogen Engine Testing infrastructure in Bengaluru last year."

 Over the next decade, Bosch views India as a region with tremendous growth potential in terms of innovation, technology, quality, and manufacturing depth. The company plans to continue investing in R&D to develop solutions that guide Bosch towards a greener and more sustainable future.