Annual financial results 2016 in Thailand Bosch continues double-digit growth in Thailand

Automotive Press Releases Friday July 14, 2017 11:32
Bangkok--14 Jul--ABM
Thailand is top revenue generating market for Bosch in Southeast Asia for fourth consecutive years
  • Third-party sales increase by ten percent to 11.9 billion baht (305 million euros) in 2016
  • Increased investment in Thailand of 50 million euros in 2016 to further expand its connected solutions offerings in the country
  • Bosch's strategic move into Industry 4.0 in alignment with the government's Thailand 4.0 policy

Bosch, a leading global supplier of technology and services, ended its 2016 fiscal year with 11.9 billion baht (305 million euros) in consolidated sales in Thailand, thus registering strong growth ten percent compared to the previous year. "For the fourth consecutive year, Thailand is once again one of the largest revenue generating markets for Bosch in Southeast Asia, largely based on the automotive business. We are upbeat about our future growth in Thailand. This is reflected in our investments in connectivity particularly in the automotive business and backed by the government's national roadmap towards Thailand 4.0," said Joseph Hong, managing director of Bosch in Thailand. "The government's policy will support a smooth transition of our business model from a global supplier of products and services to a leading provider of connected solutions in the Internet of Things (IoT), thus enabling us to help Thailand make a difference in an increasingly competitive global economic landscape," Hong added.

The number of associates employed at Bosch in Thailand stood at more than 1,200 as of the end of December 2016, a year-on-year increase of around eight percent. This number is expected to further increase in 2017, following the company's recent investment in a new gasoline systems plant in Rayong to be completed in 2017.

Increased investments in 2016

The Bosch Group invested close to 100 million euros in Thailand in the past five years –50 million euros alone in 2016. Bosch aims to maintain its market leadership position for fuel injection and is building a fuel injector factory in Thailand. It will service Thailand's growing base of vehicle manufacturers. This new factory at the Hemaraj Eastern Seaboard Industrial Estate will produce proprietary injection technology, and will be furnished with connected manufacturing technologies, adopting an Industry 4.0 concept. The total investment in 2016 also included establishing infrastructure for R&D within the gasoline injection plant and expanding the packaging technology production lines in Chonburi.

Positive development across all business sectors

In 2016, the Mobility Solutions business sector registered growth with automotive components, due to additional demand and increased vehicle production in the country. The Industrial Technology business sector had a similar upswing from projects in the automotive sector. The Consumer Goods business sector registered moderate growth via continued expansion of distribution channels and from its e-commerce business. The Energy and Building Technology business sector recorded higher sales in 2016, due to improved demand from a growing manufacturing industry and continued government spending on infrastructure.

Commitment to skills upgrading and career development of the youth

Bosch in Thailand reinforced its nationwide effort in 2016 to drive community outreach initiatives, including education and career-building opportunities for disadvantaged youth to help them become tomorrow's leading entrepreneurs. Bosch continued to support the Skills for Life Foundation and Hand to Hand Foundation for underprivileged youths in collaboration with Primavera, an association founded by Bosch associates and retirees to help children in developing and emerging countries have a better start in life. This includes collaborating with Skills for Life and the Chiang Mai University to create an integrated approach to skills enhancement by organizing a series of "train-the trainer" workshops for students of Skills for Life. The first project kicked off with the university was handmade toys, which were presented to the children at Hand to Hand Foundation last year.

Bosch Group: Strategy and business outlook for 2017

For 2017, in light of a subdued economic outlook and geopolitical uncertainty, Bosch aims to achieve sales growth of between three to five percent. And despite still heavy upfront investments in safeguarding the company's future, results are set to rise. "Business success today gives us the leeway to shape tomorrow's world," said Dr. Volkmar Denner, chairman of the Bosch board of management. "As an innovation leader, we are shaping and driving transformation," Denner added. The focal points of this transformation are changes in the mobility sphere and IoT connectivity. By 2020, all Bosch's new electronic products will feature connectivity. The key to this is artificial intelligence (AI). Over the next five years, Bosch will be investing 300 million euros in its own center for artificial intelligence.

In Asia Pacific, Bosch recorded a hefty 8.3 percent increase in sales in 2016 to 20.8 billion euros (exchange rate adjusted +12 percent). Bosch now generates 28 percent of its total sales revenue in Asia Pacific compared to 27 percent in the previousyear.

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