BUSINESS

Bosch China Head Warns Chinese Carmakers Against Price Cutting Their Way to Growth Overseas

Published: Feb. 5, 2026 6:51 p.m. GMT+8

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The head of Bosch China has cautioned domestic carmakers against launching a global price war as their exports surge, urging them to learn from Chinese solar companies’ painful experience of sacrificing profits for global market share.

While China’s domestic auto sales might slightly decline this year, rising exports are expected to offset the slowdown, keeping overall sales relatively flat compared with 2025, Xu Daquan, president of German auto parts supplier Bosch (China) Investment Ltd., said on Wednesday.

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Explore the story in 30 seconds

Bosch China warns domestic carmakers against a global price war, citing solar industry profit issues.
China’s auto exports, especially EVs, grow rapidly, offsetting flat domestic sales but raising trade and profitability concerns.
Bosch faces high competition, restructuring globally; 2025 sales reached 91 billion euros, China sales grew 4.9% to 149.8 billion yuan.

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Who’s Who

Bosch (China) Investment Ltd.: Xu Daquan, president of Bosch (China) Investment Ltd., believes that rising car exports will offset a slight decline in domestic auto sales in China. He cautioned Chinese carmakers against a global price war, referencing the struggles of Chinese solar companies. Bosch China has played a large role in developing Bosch's smart driving technology and secured a contract with Toyota.

Bosch: Bosch, a German auto parts supplier, is grappling with a challenging market and increased competition. Its chairman described 2025 as "difficult" and "painful," with job cuts planned. Despite this, Bosch's China sales rose by 4.9% in 2025. The company is actively developing smart EV components, with its China team playing a crucial role in securing a contract with Toyota for assisted driving solutions. Bosch is also considering entering battery production.

Toyota Motor Corp.: Toyota Motor Corp. will incorporate Bosch's assisted driving solutions in select vehicles destined for the EU, North America, and the U.K. The deal, secured in December, is set for implementation in 2028. This collaboration highlights Bosch's advancements in smart EV components, heavily supported by its China team.

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