Bosch forecasts 4 per cent growth in worldwide automobile industry

The company, which has been pursuing aggressive expansion strategies in the Gulf by opening state-of-the-art service centres and workshops in recent months, had a good year in 2003, but the earnings were scoured by the strong valuation of the Euro, according to Franz Fehrenbach, Chairman of the Board of Management.

While indicating that he was "basically satisfied" with the 2003 performance, Fehrenbach sounded optimistic about an improved performance in 2004. "We are firmly set and well prepared to profit in every way from the opportunities provided by the imminent upswing," he said.

In the Middle East, Bosch Automotive Aftermarket Division has charted a major growth strategy, demonstrated by the opening of new branches and service centres. More than two years ago the company also launched a liaison office in Dubai to offer quick and flexible support to regional customers. In February 2003 Central Motors, the Bosch Agent for U.A.E., opened a 40-bay workshop for all brands of cars in Abu Dhabi.

A new branch of Juffali Auto Parts Company (JAPCO), the biggest Bosch agency in the region, was opened in October last year in Riyadh, Saudi Arabia. There was also an inauguration of a Bosch Car Service centre in Kuwait, the second such facility in the Arabian Peninsula after Abu Dhabi. Bahrain and Oman also have new Bosch Car Service centres.

"The Automotive Aftermarket Division of Bosch continues to be the one of the leading brands for spare parts, diagnostics and workshop concepts and offers tremendous growth prospects in the Middle East region," said Jacek Siwinski, General Manager, Bosch Automotive Aftermarket Middle East Office, Dubai. "In the Middle East, we expect a sizable growth in view of the buoyancy in the economy and a dynamic car market, complemented by customers with disposable incomes and high-end lifestyles. We are on course to achieve higher growth than Europe and some other regions."

"While we can certainly expect a rising demand for automotive parts in the Middle East, we also foresee further sophistication among motorists by way of insistence on genuine spare parts. The opening of new service centres and workshops is designed to provide more visibility to Bosch products and convey the message that only genuine spare parts can provide full safety to car owners," added Siwinski.

The automotive technology segment proved to be the most successful of all business sectors in 2003, reaching sales of 23.6 billion Euro. Excluding the exchange rate influences, this amounted to a growth of 8 per cent. The company sees further prospects in this sector during 2004, because of the growing installation rate of the electronic stability program (ESP) and a boom in diesel systems business. Bosch expects the most dynamic growth to take place in Asia and the Asia Pacific region over the next few years.

In real terms, assuming unchanged exchange rates, Bosch achieved an internal growth of around 7 per cent and, including changes in the consolidated statement, a total growth of 10 per cent. In Asia, sales in local currency recorded an increase of 20 per cent. In North America, total sales grew by 6 per cent.