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German Chancellor Scholz recently visited China, and the first “check-in” point was Bosch Hydrogen Power System (Chongqing) Co., Ltd. Why did the German Chancellor’s first visit to China focus on hydrogen energy?
Data shows that in the fiscal year 2023, Bosch’s sales amounted to approximately 91.6 billion euros, with a pre tax profit margin of 4.8 billion euros and a year-on-year increase of 5.3% in pre tax profit margin.
In the Chinese market, Bosch maintained growth in 2023, with sales reaching 18.2 billion euros, a year-on-year increase of 5.2%. Among them, the intelligent transportation business has become the main growth engine, achieving a sales growth of 8.2% in China, reaching 14.6 billion euros.
Intelligent transportation is the core technology field of Bosch. This year alone, Bosch will launch approximately 30 production projects related to electric vehicle technology.
The future of electric travel is approaching, and the only suspense lies in the speed at which it will become popular in various regions around the world. Bosch predicts that by 2030, up to 70% of new car sales in the European market may be pure electric vehicles. In the Chinese and North American markets, this proportion is expected to be between 40% and 50%.
Bosch is also comprehensively laying out to accelerate the electrification transformation. For example, Bosch will achieve an annual growth rate of 10% faster than the market in this business field by tailoring new redundant braking systems for electric travel and autonomous driving; In terms of vehicle motion control systems, Bosch maintains a leading position. In the latest winter test, Bosch equipped more than 20 mainstream brand test vehicles with vehicle motion control systems. Bosch stated that the first order of this year will be put into mass production. It is expected that Bosch will achieve sales of hundreds of millions of euros through this technology by 2030.
China is expected to become a leading market in hydrogen energy
Hydrogen fuel cell vehicles, as an important development direction in the field of new energy vehicles, are gradually becoming a competitive focus in the global automotive industry.
As an important base for Bosch’s electrification strategy, the new factory of Bosch Hydrogen Power System (Chongqing) Co., Ltd. was officially put into operation in November 2023. The project covers an area of approximately 240000 square meters and integrates research and development testing, production manufacturing, and sales management of hydrogen power products. It is equipped with Bosch’s largest Class A fuel cell (assembly) research and development center.
In the field of hydrogen energy, Bosch’s business plan is expected to reach 5 billion euros in hydrogen technology sales by 2030. It is reported that Bosch has started producing hydrogen power modules in Stuttgart, Germany and Chongqing, China in 2023.
From a technical perspective, hydrogen internal combustion engines installed on commercial vehicles will become one of the fastest ways to achieve carbon neutrality. Bosch predicts that the market size of this technology will reach nearly 1 billion euros by 2030. The hydrogen internal combustion engine equipped with Bosch injection technology will be put into use in India as early as this year. Bosch has received five production orders from well-known truck manufacturers in the world’s three major economic regions.
Bosch also plans to enter the rapidly growing market of hydrogen production. By 2030, the installed capacity of hydrogen electrolysis tanks worldwide will reach approximately 170 gigawatts, which is about 25 times the current level. Bosch’s electrolytic reactor will be put into the market next year, and in the future, Bosch will not only become synonymous with hydrogen powertrain, but also with hydrogen energy production.
Deepening local layout, China becomes an important innovation base
Data shows that in the past 10 years, Bosch has invested over 50 billion yuan in China. As of the end of 2023, Bosch has 34 production bases and 26 technology centers in China, with nearly 58000 employees. China is the market where Bosch has the largest number of employees outside of Germany, with over 10000 R&D personnel. In 2023 alone, Bosch’s research and development expenses in China reached 11 billion yuan.
As a traditional automotive powerhouse, Germany has extensive and profound cooperation with China’s automotive industry. With China’s “lane changing overtaking” in the field of new energy, cutting-edge innovative technologies such as intelligent cabins, advanced intelligent driving, and hydrogen fuel cells are moving from China to the world.
Next, Bosch China will focus on growth areas such as new energy, intelligent driving, hydrogen energy, software, and artificial intelligence, adhere to technological innovation, sustainable development, and open cooperation, and actively contribute to the development of China’s modern industrial system.
