Bosch plans to increase investment in research and development for the production of electric components for two-wheelers at a local level.

Bosch Ltd, the Indian arm of Germany's Bosch GmbH, is poised to ramp up investments in research and development (R&D) and localize production of components essential for electric two-wheelers (e2w), according to a senior company executive. The move aligns with the expanding adoption of eco-friendly transportation in India, the world's fifth-largest economy. Guruprasad Mudlapur, President and Managing Director of Bosch Ltd, highlighted the company's commitment to enhancing R&D efforts in passenger car electrification within India. Notably, Bosch is actively engaged in discussions with various original equipment manufacturers (OEMs) regarding electrification solutions, underscoring its dedication to the evolving automotive landscape.

As a key supplier to major Indian and global automakers, including Maruti Suzuki, Mahindra & Mahindra, Tata Motors, and the Volkswagen group, Bosch plays a crucial role in the automotive industry. The company's involvement extends to electric vehicles (EVs), with components supplied to manufacturers such as Bajaj Auto and TVS Motor Company. Bosch's mobility segment, which constitutes two-thirds of its India business, is heavily involved in supplying components to OEMs across commercial and passenger vehicle categories.

Mudlapur emphasized the potential growth in the electrification of the two-wheeler commuter segment, particularly scooters, and Bosch's efforts to facilitate this transition. He highlighted the company's supply of hub motors to OEMs and its localization efforts, which enable OEMs to benefit from production-linked incentives (PLI).Despite the significant investment in EVs in recent years, Mudlapur acknowledged that immediate profitability in the segment might be challenging. However, he reiterated Bosch's long-term commitment to the electrification segment and its efforts to improve margins through volume gains and cost optimization.

Bosch Ltd has reported a 15% year-on-year increase in revenue in the December quarter, with a net profit surge of 62%. Mudlapur offered a cautious outlook for the ongoing quarter due to impending national elections.

Regarding government incentives on EVs, Mudlapur noted a global trend of diminishing subsidies but highlighted the potential for market realignment and cost reduction, particularly in battery prices, which could drive EV adoption. He anticipated a shift in the form of subsidies, emphasizing the long-term growth prospects for electrification in India.