As global trade is affected by rising geopolitical uncertainty and economic volatility, the Bosch Group is increasing its focus on India as one of its strategic growth markets, alongside North America, while implementing structural job reductions and cost optimisation measures across Europe.

At Bosch's Annual Media Conference, Chairman Stefan Hartung and Board Member Markus Forschner presented the company's updated global strategy in response to stagnating automotive production in Europe and the slow adoption of technologies such as electric mobility and hydrogen fuel cells in some regions.

"In North America and India in particular, we intend to grow faster in the coming years than we have previously. For us, this is not about day-to-day politics, but part of our long-term strategy," Hartung stated.

India's inclusion among Bosch's growth targets follows the company's expansion across mobility, consumer goods, and energy technology sectors, with emphasis on electrification, hydrogen systems, and AI-driven automation.

In light of recent geopolitical tensions in the Indian subcontinent, Bosch's leadership reiterated their assessment of India's long-term potential. Hartung stated, "Of course, it is a risk because of this unfortunate terrorist attack and the subsequent military responses. We hope that this is a temporary situation. We hope that Pakistan and India will reconcile again."

He added that with increasing consumer purchasing power and its position as a large economy in Asia, India continues to play a role in Bosch's global operations.

In the Energy and Building Technology sector, Bosch expects the planned acquisition of the heating, ventilation, and air-conditioning (HVAC) business of Johnson Controls and Hitachi to contribute to growth, particularly in India and North America-markets currently considered less saturated but with demand for energy-efficient technologies.

Bosch is also expanding its mobility solutions in India. In line with the development of software-defined vehicles, the company plans to increase investment in electric vehicle manufacturing, product development, engineering, and partnerships.

The automotive component manufacturer anticipates maintaining a growth rate above 8% over the next five years in India, exceeding the projected overall market rate. Growth in India's automotive sector is attributed to higher vehicle volumes and increased content per vehicle.

While Bosch is focusing on expansion in India, it is also carrying out structural adjustments in Germany and Europe due to weak market conditions and growing competition, particularly from Chinese suppliers.

The job reductions are part of what Bosch refers to as a "necessary recalibration" intended to maintain competitiveness and allocate resources toward innovation and acquisitions.

Bosch reported free cash flow of EUR 0.9 billion (US$ 1.01 billion) for 2024 and is targeting an EBIT margin of 7% by 2026. "Our goal is to be among the top three providers in our core markets within five years. Growth in India and North America will be a key enabler of that ambition," Hartung said.