2016-04-25 | China | Corporate News
A presentation by Dr. Rolf Bulander,
member of the board of management of
Robert Bosch GmbH and chairman of the
Mobility Solutions business sector,
at the 14th Beijing International Automotive Exhibition
April 25, 2016
Ladies and gentlemen,
Good afternoon! Welcome to the Bosch booth here at Auto Beijing. We are happy to welcome you here in this hall – an OEM exhibition hall in which Bosch has the honor of being the only supplier.
In my presentation in Shanghai last year, I talked about congestion and the solutions Bosch is offering to help improve city driving. On my way here today, I was able to experience Beijing congestion for myself. I got stuck in bumper-to-bumper traffic. My driver told me that’s just the way it is here in Beijing – it’s a fact of life. But it shouldn’t be – at Bosch, we believe that personal mobility should contribute to a higher quality of life, not detract from it.
This year will mark Bosch’s 130th anniversary. Ever since the company started out, it’s been dedicated to offering technology that is “Invented for life.” And in no domain is this truer than in the automotive one. After all, part of making life better for people around the planet is making mobility safer, more eco-friendly, and more connected. Today, I’m going to tell you about some of the ways we’re achieving this.
Development of Mobility Solutions in 2015
But first, I’d like to take a look at the business performance of our Mobility Solutions business sector in 2015. According to preliminary figures, the sector’s sales grew by 12 percent to 41.7 billion euros (around 340 billion RMB) – and that despite lackluster growth in global vehicle production.
Mobility solutions business in China witnessed a positive sales growth to 53.7 billion CNY in 2015, which is in line with the Chinese automotive industry development. Looking at our individual areas of business, gasoline systems as well as safety and assistance systems maintained double-digit growth, which reflects increasing market demand for environmental-friendly combustion engine systems, as well as electrification and automation technologies. In terms of headcount, around 32,000 of our 55,000 associates in China now work for mobility solutions – a growth of 16 percent compared to the previous year. Currently, around 4,000 of these associates are engineers devoted to the development of new innovative mobility solutions at 12 technical centers in China. Looking at the 27 Bosch locations around the country, 19 of them are home to automotive manufacturing. And we continuously invest to further increase our footprint here in China: last year, for example, Bosch opened a new plant in Liuzhou [liǔ zhōu]. And in mid-2016, we will witness the ground-breaking for a new plant of our Car Multimedia division in Wuhu [wú hú].
“New normal” still offers many growth opportunities
Looking at the bigger picture, we should remember that there are 24 million vehicles sold in China in 2015. Given a figure like that, market growth of 4.7 percent in the year is still pretty substantial. Figures in this range are now regarded as the “new normal” of the Chinese economy. Innovations in mass transportation, individual mobility, and mobility-related services are opening up a wealth of new business opportunities. To name just a few of the many examples that can be found here in China, there are new-energy vehicles, e-scooters, automated parking, and O2O (online to offline) internet taxi services. New non-traditional automakers have entered the market with new business models. As a leading mobility solutions provider, Bosch is already partnering with many of these new market players.
The automotive industry shows huge potential for the adoption of new technologies to make vehicles produced in China safer, more efficient, and more connected.
Connected cars will become personal assistants
Firstly, let me start with connectivity. The Chinese telematics business is expected to generate sales of 500 billion RMB in 2016, according to a report by a third-party research company. We at Bosch believe that the car of the future will be connected, and this is why we’ve been working for years to not only bring the internet into the car, but also to put cars themselves onto the internet.
One simple way of connecting cars is by integrating smartphones. Bosch’s mySPIN integrated solution is one example of this. It allows Android and iOS devices to link up to the vehicle’s infotainment system. A wide range of apps can then be conveniently operated from the vehicle’s central display.
When a car is connected to the internet, it can warn drivers about traffic jams and accidents, as well as guide them to free parking spaces or charge spots. This additional information forms what we call the connected horizon. The result is more foresighted and proactive driving. Not only does this increase convenience, it also enhances safety and efficiency considerably. And finally, once highly automated driving arrives, cars will support drivers in making appointments and running video conferences, or grant them access to social media. More and more, we’re turning the car into a kind of personal assistant.
To utilize all the benefits of connected driving, Bosch is developing new display solutions and operating concepts. Some of the cutting-edge technologies we’re using are gesture, voice, and eye gaze recognition. By reimagining the human-machine interface in this way, we’re helping to simplify the operation of new functions considerably.
Electrification is making vehicles more eco-friendly
Besides that, it is increasingly essential for cars to become more efficient and eco-friendly. The 13th Five-Year Plan recognizes this need, and lists ambitious targets for pollution control and environmental protection. In addition, the so-called Phase 4 standard, which regulates the fuel efficiency of domestically manufactured and imported new passenger cars sold in China, came into effect in January. Phase 4 mandates an overall fleet-average fuel consumption of 5 liters per 100 kilometers for new passenger cars by 2020. This is of course a huge challenge. As one of the leading suppliers of resource-conserving and efficiency-boosting technologies, however, it also presents us with huge opportunities. By electrifying cars and further improving internal combustion engines, air quality in Chinese cities can be increased considerably.
Of the predicted 112 million total vehicles sold worldwide in 2020, we currently forecast that 6 million will be hybrids, 4.5 million will be plug-in hybrids, and 2.5 million will be all-electric. Accordingly, Bosch offers a wide range of components for electrification, from mild and plug-in hybrids all the way to fully electric powertrains. As of 2015, we had already completed 30 orders relating to powertrain electrification worldwide. The BMW i8, Porsche’s 918 Spyder, and the new Google self-driving prototype are just a few examples. Many of these technologies have been adopted in local brands in China as well.
One attractive entry-level solution for electrification we offer is our BRS boost and recuperation system (BRS). When combined with the latest generations of engines, this low-voltage solution can reduce a vehicle’s fuel consumption and CO₂ emissions by up to 15 percent. It is also making hybrids affordable even for the compact class. We now offer this technology as a supplementary add-on for our customers in China, where it has the potential to help meet the fuel consumption target. So far, BRS has met with considerable interest.
However, we will not be able to rely on electromobility alone to meet the 5 liter per 100 km target. Over the next five years, only around 5 million new energy vehicles will be sold – a very small number compared to conventional vehicles. Clearly, therefore, the continued optimization of diesel and gasoline direct injection technology for combustion engines will be key to reaching the fleet target.
As important as cars are here in China, there’s another huge e-mobility market that shouldn’t be neglected. I’m talking about e-scooters, of course. In recent years, our activities in this area have grown tremendously. We supply a number of Chinese e-scooter manufacturers with both motors and electronic control units – for the vehicles they sell here as well as the increasing number they sell internationally. You may have also noticed this Ninebot next to me, made by the Chinese company MI. Yes, Bosch supplies its electric motors. I bet you all wish you had one of these to help you race around this big exhibition center to catch all the press conferences!
Safety as motivation behind automated driving
Another major global automotive trend is what we at Bosch call automated driving. We believe that this will come in steps: from assisted driving to partially automated driving to highly and fully automated driving. Today’s driver assistance systems represent the important first technological step on the road to fully automated driving.
According to a driver survey we conducted at the end of 2015, the majority of Chinese car owners are extremely interested in and well informed about driver assistance systems. This confirms that our vision for automated driving aligns closely with the needs of our Chinese customers. More than 75 percent of the people we surveyed would be interested in having all driver assistance functions, and more than 80 percent believe that driver assistance will make driving safer and more relaxed.
When it comes to driver assistance systems and automated driving, Bosch has more experience, expertise, and relevant technology than just about any other company. Our traffic jam assist function has been in production since 2015. Our valet parking function will be tested in a pilot project before the end of this decade. By about 2020, cars will be driving themselves on freeways with our highway pilot. And speaking of freeways, the automaker Chang’an just successfully completed a 2,000-kilometer automated highway test drive. Guess who supplied the key technology for this long journey in the form of the car’s highway assist function? That’s right – Bosch did.
As assistance functions such as ESP become ever more widespread in China, Chinese automakers are increasingly showing interest in other types of driver assistance as well. For instance, local OEM Geely released the Boyue [bó yuè], its new city SUV, earlier this month. Bosch supplied a number of driver assistance functions for this vehicle, including ACC adaptive cruise control, automatic emergency braking, evasive steering support, and automated parking.
Bosch’s motivation for developing automated driving is and remains safety. According to expert analysis, some 90 percent of all traffic accidents are caused by human error, be that faulty vehicle operation, driver fatigue, or violation of traffic regulations. If we can relieve the driver of control of the vehicle in complex or monotonous situations, we can prevent accidents and save lives. This vision of an accident-free future is what motivates our 2,500 Bosch driver assistance developers worldwide – including in China. We are also continuously investing in our Donghai test track as part of our efforts to promote driver assistance here.
Easier, more professional automotive repair
A car with all these cutting-edge solutions certainly relieves a lot of the burden on drivers, but even a car like this occasionally needs to be serviced or repaired. Here as well, we want to support Chinese car owners with our comprehensive professional know-how. For this purpose, we have launched a franchise concept to address the increasing demand for standardized and high-quality automotive servicing. To date, more than 125 franchises have already opened their doors. Now, in an effort to reach even more drivers, our Automotive Aftermarket division will introduce its new “Fast Fit” concept as a further extension of our franchise network. Fast Fit is an entry-level workshop concept that will provide Chinese customers with high quality automotive services including general maintenance, brakes, tires, and detailing.
Closing
Ladies and gentlemen, mobility is changing before our eyes. Connectivity is turning our cars into information hubs and personal assistants, electrification is making them more efficient and economical, and automation is bringing us greater safety behind the wheel. Where all of these are concerned, our strategic imperative at Bosch is to pursue innovations that first and foremost benefit people – this is what we call technology “Invented for life.” As one of the leading suppliers in all three areas of development, Bosch is not only helping to shape the future of mobility – we are helping to enhance quality of life for people in China and around the world.
In China, the Bosch Group manufactures and markets automotive original equipment and aftermarket products, industrial drives and control technology, packaging technology, power tools, security and communication systems, thermotechnology, household appliances. Having established a regional presence in China since 1909, Bosch employs close to 53,000 associates (as per April 1, 2015) and operated 62 legal entities and facilities, with consolidated sales of CNY 52.1 billion in fiscal 2014.
The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). According to preliminary figures, the company generated sales of more than 70 billion euros in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. The basis for the company’s future growth is its innovative strength. Bosch employs 55,800 associates in research and development at roughly 115 locations across the globe. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”
The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.