Tos1 supplier Bosch India held its annual conference on Thursday, highlighting its performance for FY2022. The German company reported a healthy 21.2 percent increase in revenue over FY2021. Bosch’s investment for 2021-22 stood at Rs 302 crore while registering a profit of Rs 1,500 crore (PBT), 14.4 per cent higher than the previous year.
The conference was attended by Soumitra Bhattacharya, Managing Director, Bosch and President, Bosch Group, India, and Bosch.
Soumitra Bhattacharya, MD, Bosch said that despite the demand and supply challenges, India’s autonomous market will continue to grow. “Now with the lockdown of China, there is a strong possibility that the war between Ukraine and Russia will be prolonged, which will affect different parts of the world, including India.”
He noted that the current shortage of semiconductors began almost two years ago and that many companies are still relying on Tier 1 suppliers like Bosch. “The ECU is a very common example of an electronic control unit, so these chips are there because we can’t do it without these chips,” he said, referring to the ECU of the car. He said that although production is going on, it is not running at full capacity.
Guruprasad Mudlapur, Joint MD and CTO, added, “An electronic control unit contains about 75 per cent imported material and about 50 per cent of it belongs to semiconductors. He said the situation could continue till next year. “Today’s expansion is limited by the ability of semiconductor companies to procure equipment for semiconductor manufacturing. They have to bring capex and that capex itself is the biggest limitation. “
Investment and acquisition
Elaborating on India’s plans announced by Bosch earlier this year, Bhattacharya said the new investment would go to the two main sectors and would not be in proportion. He said the company would invest in digital mobility.
Bosch is the largest tier-one supplier for electrical mobility or global acquisitions. Mudlapur said, “Coming to India, we have just started our journey in India, and we have acquisitions in the two-wheeler segment. We are supplying their components and are now working with leading OEMs in India to acquire the passenger car market. “
The company will continue its electrification journey in the commercial vehicle segment. Mudlapur added, “I would say in the Indian context, this is still a very small step, but in the coming years, we should start to see an increase in market share.”
Hydrogen as the fuel of choice
The Tier 1 supplier has entered the green hydrogen market and announced plans to make electrolyzers that will help convert water into hydrogen. At the same time, Bosch will also make injectors for use in ICE vehicles to supply hydrogen to the engine.
“We have already built a complete portfolio in the last seven or eight years, and are now being piloted worldwide. We already have fuel cell electric vehicles in China, the United States and Europe as a ‘pilot project’,” added
The executive added, “When will it come to India? This is something we are working with OEM We’re working with ecosystem developers, and hydrogen, as you know, is not something that’s going to work in today’s infrastructure. We need to get to the hydrogen fuel station. “
Bosch is confident that India will not lag behind developed countries in deploying hydrogen-powered vehicles. The company is looking to install hydrogen-fueled vehicles in early 2025-26 as the market and infrastructure are ready.
Why the next big step for the hydrogen automotive industry?
Hydrogen as a fuel carries a much higher density than electric vehicles on the road today. Also, since hydrogen is abundant and has no tailpipe emissions, the automotive industry seems to be making a huge leap forward in the development of this area. Refueling time is much shorter than recharging a battery pack, and at present, there are pipelines that carry LPG and CNG over long distances, with hydrogen having several advantages.
Reliance has invested in hydrogen production in India and aims to become the world’s largest producer in the next 12 to 14 months. With the government’s interest in the same issue, India is not far behind in terms of infrastructure.