Quick Take: Bosch Posts Bumper Sales Growth Amid Strong Vehicle Market

German engineering and electronics company Robert Bosch GmbH saw sales growth of nearly 24% in China last year as the country’s new-energy and commercial vehicle markets boomed.

The sharp increase in the company’s year-on-year sales in 2017, led its total revenue in the country to rise to 113.4 billion yuan ($17.9 billion), said Chen Yudong, the firm’s China chief, at a media event in Shanghai last week.

Chen attributed this trend to industrial upgrading in China, where Bosch generated the biggest revenues of any country after its home base of Germany.

Bosch offers a range of engineering products, but its core business is the auto industry, for which it provides components including generators, brakes and controls.

The company’s bumper 2017 revenue coincides with the strong performance of China’s new-energy vehicle sector, an area into which central and local governments have in recent years pumped massive subsidies.

Total sales of new-energy vehicles climbed 53.3% to 777,000 units last year, according to the China Association of Automobile Manufacturers (CAAM).

However, as the government plans to phase out the incentives and overall Chinese car sales are set to slow, Chen said he expects Bosch’s growth in sales in the country to slow to 10% this year.

CAAM predicted a 3% increase in sales in China’s car market in 2018, compared with the 5% growth it forecast for 2017. Actual sales growth in 2017 was around 3%.

Contact reporter Mo Yelin (yelinmo@caixin.com)