Bosch has been actively expanding its presence in China, focusing on increasing investment and accelerating localization efforts. On April 22nd, Peng Deyuan, President of Bosch (China) Investment Co., Ltd., announced that from 2008 to 2010, the company would invest an additional 850 million euros, building upon a total investment of 1 billion euros in China. This expansion aims to enhance production and R&D capabilities. In February, the new headquarters for Bosch Shanghai was officially laid, with completion expected by 2010. Once finished, this facility will serve as the company’s R&D center and business hub in China. Additionally, Bosch launched three new automotive electronics production lines. In April, a new ABS/ESP electronic control unit line was introduced, while another airbag electronic control unit line began operations in the second quarter. The company also completed the North-South layout of its chassis system in China. Previously, the only production base was in Suzhou, which limited Bosch's operations in the north. Establishing a facility near Dalian, with its excellent port access, is strategically important for both local and export activities. In response to the financial crisis, Bosch Group Chairman Philippe Bach visited China, emphasizing the importance of the Chinese market. Despite challenges, the company remained optimistic, stating that China would continue to be a key driver of growth in Asia. Sales in China were expected to grow by 30% in 2008, though 2009 was anticipated to be more difficult. Bosch also expanded its energy-related technologies, including diesel common rail systems at its Wuxi production base, which saw output rise from 100,000 units in 2007 to 1.4 million by 2010. Employee numbers at the Wuxi base doubled to 3,900 by 2009. Meanwhile, competitors like Delphi and Denso were also strengthening their positions in China, with Delphi operating two companies in Shanghai and Beijing, and Denso having established itself through ventures such as Shanghai Denso Fuel Injection System Co., Ltd. since 2003. To further strengthen its brand, Bosch focused on promoting "energy saving" and "security" solutions. It remained optimistic about the future of diesel engines in China, working with automakers like Chery, Great Wall, and Huatai to develop clean diesel models. Additionally, Bosch collaborated with MAHLE to introduce turbochargers for improved fuel efficiency in gasoline vehicles, set for production in China in 2010. The company also promoted advanced transmission technologies such as CVT, DCT, and AT, offering proprietary technology transfer and engineering support to Chinese firms. A low-cost CVT model tailored for China and India, called P070, was showcased. Bosch also accelerated its efforts to dominate the security system market, opening a winter automobile testing center in Yakeshi, Inner Mongolia, to test active safety systems like ABS, TCS, and ESP. With Bosch's involvement, the ESP installation rate in China is expected to reach 18% by 2012. Finally, Bosch increased its focus on the post-market automotive industry, anticipating that the financial crisis would shift its impact from car sales to after-sales services. To prepare, the company acquired Bessbad and Kinder Instruments, enhancing its capabilities in automotive testing equipment and diagnostic tools. These moves reflect Bosch’s long-term strategy to solidify its position in the dynamic Chinese market.

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