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Tuesday, October 3, 2023

Bosch achieves double-digit growth in Thailand

Bosch, a leading global supplier of technology and services, recorded sales growth of 397 million euros (14.6 billion THB) in 2022 in Thailand, an increase of 10.7 percent over 2021. “Our annual result has been greatly influenced by the surge in local market demands due to post-pandemic recovery of various markets that led to an improved supply chain. These factors, along with our dedicated investment of 18 percent growth, totaling 32.2 million euros (1.2 billion THB) and the contribution of around 1,500 associates in the country, have played a significant role in our remarkable performance,” says Joseph Hong, managing director of Bosch Thailand. “We are cautiously optimistic about the accelerating growth in the country’s economy, driven by the ongoing post Covid recovery and rising tourism. The resurgence of tourism has invigorated various industries, driving economic activity and growth. However, we remain mindful of potential challenges and uncertainties ahead given the forecasted global economic slowdown, and we will continue to adapt to the situation as we strive to ensure sustainable growth,” Hong added.

Bosch Amata plant expands to manufacture motorcycle ABS

Starting from the second quarter of 2022, Bosch Amata City plant has begun to produce ABS motorcycle systems, marking the company’s third global manufacturing site dedicated to motorcycle ABS. With the new production capabilities at the Amata plant, Bosch is poised to meet rising demands in the two-wheeler market and promote safer, more efficient mobility solutions for regional riders. With its extensive experience in ABS production for four-wheelers at the same plant since 2014, Bosch brings a wealth of knowledge and expertise to enhance safety standards in the two-wheeler industry.

“Safety is paramount when it comes to vehicles, and our expansion into motorcycle ABS production at the Amata plant is a progressive move. By offering tailored safety systems for two-wheelers, we are solidifying Bosch’s position as a powerhouse in mobility in Thailand. This development not only brings us closer to our customers but also reaffirms our commitment to advancing safety standards in the ASEAN market,” comments Hong.

Solutions for software-defined vehicles available for the local market

In the future, software will play a pivotal role in seamlessly integrating cars into the digital world, shifting customer experience from hardware-based to software-driven, incorporating connectivity, automation, and personalization features.

In software-defined vehicles, Bosch’s vehicle dynamics control 2.0 introduces a groundbreaking smart control concept, enabling intelligent interaction between actuators like brakes, steering, powertrain, and suspension. Anticipating vehicle behavior and proactively intervening, it ensures safer driving and an extraordinary experience. Meanwhile the company’s cloud-based solution – battery in the cloud, is a smart connected solution designed for improved battery management of electric vehicles. Battery in the cloud boosts battery performance, lifespan, and reduces breakdown risks while enhancing transparency of battery condition.

“Bosch is the go-to partner for hardware, software, and system solutions for the automotive industry. In emerging regions like Southeast Asia, the rising demand for mobility motivates us to develop technology that will make mobility safer, more exciting, and more sustainable for all road users,” says Joseph Hong. “Drivers of today expect their vehicles to be able to do more, making the role of software more vital than ever,” he adds.

Harnessing AIoT solution for enhanced surveillance

In 2022, Bosch partnered with local municipalities to install thousands of security cameras in vibrant areas of Phuket, Chiangmai, and Rayong. This initiative yielded accurate data for safety zones, facilitating ongoing enhancements to municipal roadways and infrastructure. Law enforcement now benefits from clear images, intelligent video analytics, and high-quality surveillance footage capable of detecting license plates, enabling more effective investigations of crimes and traffic violations.

Bosch’s portfolio includes video security cameras, fire, and smoke detection cameras (AVIOTEC), access management systems (AMS), and IP-based public address and voice alarm (PREASSENSA) systems. These solutions offer seamless connectivity, real-time object detection, and behavior analysis, enhancing safety and security. AI integration enables automatic identification of emergencies, targeted information broadcasting, and voice recognition with translation capabilities. This comprehensive suite of features equips authorities with the tools needed to effectively manage emergencies and ensure the safety and well-being of the community.

Bosch’s industrial technology division drives unprecedented growth in factory automation and hydraulics

Bosch’s Drive and Control business unit, part of the Industrial Technology division, celebrated a decade of operations in Thailand alongside a record-breaking sales performance, cementing its position as leader in industrial automation and hydraulics technologies across key industries in Thailand.

In 2022, the company delivered its Autonomous Mobile Robot (AMR) as part of the smart factory concept for the automotive industry. This technology aims to reduce costs, improve efficiency, and ensures safety in industrial automation. The Bosch drive and control unit in Thailand is also working to become the centre of competency for assembly technology in ASEAN and Oceania. The division has already played a crucial role in powering assembly lines for electric vehicles in Thailand’s automotive industry.

Bosch is also committed to promoting environmental protection and resource conservation through its hydraulic technology. For example, the company provided 80 units of mobile submersible water pumps driven by motors for a flood and irrigation project in Thailand. These pumps are designed for easy installation and commissioning into tight spaces, limited areas, and alongside canals in urban or rural areas that are prone to flooding or inefficient irrigation. The programmable speed ensures an optimal flow rate for efficient water management. In 2023, the company plans to extend this solution to additional locations in Thailand and Laos.

E-commerce propels direct-to-customer business growth

E-commerce has propelled Bosch’s direct-to-customer business growth, driving power tools, home appliances and automotive aftermarket goods sales on e-commerce platform to impressive growth in 2022.

Bosch Power Tools saw a rebound in revenue, particularly in the cordless segment. The success of the 18V range was further boosted by the online PROMIX campaign, offering users a free 18V battery. The BeConnected app played a crucial role in driving direct-to-customer growth. It provided users with benefits like centralized product data, paperless warranty records, and online function setup.

Sales growth in Bosch Home Appliances was fueled by a “Like a Bosch” campaign and expanded channels, including direct-to-consumer online sales. Integration of the HomeConnect feature allowed smartphone control and additional benefits for consumers.

E-commerce also drives direct-to-customer growth in Bosch’s Automotive Aftermarket division, thanks to strategic partnerships, expanded product portfolio, and increased market coverage to meet customer demand. Notably, in Thailand, the division now offers around 90 percent of locally needed brake pads, strengthening the company’ competitive edge through production at Bosch plants.

Leveraging young talents

Last year, Bosch Thailand collaborated with nearly ten leading universities in the country to extend its internship program from 173 to 250 students which is an increase of approximately 45 percent compared to the previous year. These students had the opportunity to work in various departments across three working locations in Bangkok and Rayong, experiencing diverse

cultures and a multinational environment that helped them enhance their skills and contribute to our organization.

Building on this success, Bosch Thailand plans to expand the program to 350 students for 2023. Additionally, the company’s professional experts from Germany provided lectures on IoT business, I4.0 implementation, as well as advanced technologies and solutions providing students with a better understanding of future digital transformation opportunities that will benefit their educational development.

“At Bosch Thailand, we are committed to supporting young talent in Thailand and driving innovation and technological advancements across the region. Our collaboration with leading universities helps to provide valuable opportunities for students and allows them to contribute to our organization, while also fostering their professional development,” stated Joseph Hong.

100 years of Bosch in Thailand

In Thailand, Bosch is preparing to commemorate a remarkable milestone – 100 years of contributing to the country’s progress and makes sustainability efforts. Since 2020, the Bosch Group with its more than 400 locations worldwide has been climate neutral (scopes 1 and 2). An independent auditing company has officially confirmed this. We now aim to improve the mix of measures and thus further reduce climate impact. At the same time, we have expanded our activities in recent years to also reduce emissions produced outside Bosch’s direct sphere of influence, for example at suppliers, in logistics, or when our products are used — known as scope 3. Our aim is to reduce these upstream and downstream emissions by 15 percent in absolute terms by 2030, compared with the baseline year 2018 — that is, irrespective of our company’s growth. As a result, our focus is increasingly shifting to our activities in purchasing, logistics, and product development.

As part of its 100th anniversary celebrations, Bosch Thailand plans to organize a charity run that also ties in the sustainability concept in which runners can take part in helping to conserve the environment.

Bosch’s unwavering dedication to sustainability has allowed it to set an industry standard that is unparalleled. As a company, Bosch is committed to continued innovation and leadership in sustainable technology, ensuring a better future for all, as promised in its ethos “Invented for Life”. The company remains optimistic about its future in Thailand.

Bosch Group: outlook for 2023 and strategic course

In 2022, Bosch exceeded its business targets in what was a challenging year. The supplier of technology and services increased its total sales to 88.2 billion euros, the EBIT margin from operations rose from 4.0 to 4.3 percent. “We rose well to the challenges of 2022 – both our sales and our margin were higher than expected,” said Dr. Stefan Hartung, the chairman of the board of management of Robert Bosch GmbH. Despite the after-effects of the Covid-19 pandemic, Bosch was able to increase its sales by 3.5 percent in the first quarter of 2023. Despite the modest economic outlook, the company is aiming for sales growth of between 6 and 9 percent for the whole year 2023. Its target for EBIT margin from operations in 2023 is in the region of 5 percent. Even if the economic and social environment remains demanding, Bosch wants to grow significantly faster in the coming years. “Our aim is to grow in every region of the world and to be among the leading three suppliers in our relevant markets,” Hartung said.

The fight against climate change is causing considerable upheaval in business and society, and also accelerating technological change. “This technological transformation is opening up growth opportunities that we want to seize. In this context, our ‘Invented for life’ ethos is ideal – not only when it comes to the major trends of electrification, automation, and digitalization, but more than ever also with respect to software and artificial intelligence,” Hartung said. Bosch is responding to the trend toward software-based automotive engineering by realigning its automotive-supply business: within Robert Bosch GmbH, Bosch Mobility will in the future be managed as a business sector with responsibility for its own business and its own leadership team. The aim is to be able to serve existing and new customer needs even better and faster with customized solutions from a single source. The Bosch chairman announced that the newly restructured mobility business is set to grow annually by an average of roughly 6 percent up to 2029, when it will achieve annual sales of more than 80 billion euros.

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