Plug-n-play before EV portfolio localization: Bosch
PremiumBosch India MD pointed out that the industry is still trying to understand and formalize the market
Bosch India, the domestic arm of the world’s largest automotive parts supplier, on Thursday said it is committing ₹1,000 crore to develop advanced automotive technologies, including an EV portfolio, in India over the next four-five years.
Part of this investment is linked to Bosch India’s application to the government’s PLI scheme for automotive components, Soumitra Bhattacharya, managing director Bosch Ltd and president, Bosch Group in India, told Mint on Thursday.
Bhattacharya said the mobility solutions provider will seek to make minority investments in firms that look to the future. For instance, Bosch has invested in battery swapping player SUN mobility, and will continue to invest selectively in startups working in defined areas of mobility and the digital ecosystem.
Bosch is an important supplier of critical parts to a majority of Indian and global automakers, including Maruti Suzuki, Mahindra & Mahindra, Tata Motors and the Volkswagen group.
“EV volumes in India are currently low, but they’ve improved from near zero-levels and will further improve. We are working on our capabilities on giving ready components, 48-volt batteries and other areas", Bhattacharya said, adding, “Initially we will try to do plug-and-play, and go in for localization later." Bosch has supplied certain products to EVs manufactured by Bajaj Auto and TVS MotoCorp.
However, Bhattacharya pointed out that the industry is still trying to understand and formalize the market and that there are fundamental differences in how OEMs have approached ICE (internal combustion engine) and EV technology. “A space in EVs where a lot of work is done is actually the OEMs. We are not only a component supplier, but also a solution provider. For example, in the transition from BSIV to BSVI, we gave end-to-end solutions. OEMs are also getting into this space themselves. The battery and some key components constitute the majority of the vehicle. That’s one big change."
“The second one is, many startups and Progressive Manufacturing Players (PMP) have entered into the space as new OEMs, specifically in the two-wheeler market", Bhattacharya said. “We are playing in this space and the industry is trying to understand how much they will outsource, how much they will work with organizations like us or whether they will tie-up with startups or progressive makers. We will stay steadfast in our transformation and transition, which is our continued focus on our ICE core, which we believe strongly will still be 70%-75% of the market by 2030. So ICE will still be a dominant part."
Bhattacharya added that Bosch globally spends 400-500 billion euros every year on electro mobility, including hydrogen, hydrogen fuel cells and stationary fuel cells. “We will use our parent’s capability and our local knowledge where India has the biggest R&D in the world outside Germany, to look at innovative and affordable solutions, working with our customers. So I think in the long run, this will play out and players will understand the need to have sustainable solutions by organizations who have the capability to deliver holistic solutions rather than just a component."
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The global shortage of semiconductors is likely to persist through this calendar year, even as demand for the electrical chips continues to increase, Bhattacharya said.
A shortage of ECUs due to a surge in demand for consumer goods and automobiles post-Covid constrained automakers ability to produce cars.
“There is huge demand post-covid for electronic items, whether it’s cell phones, tablets or computers; and then there is the induction of 5G, which needs even more chips" Bhattacharya said, also highlighting other logistics-related bottlenecks that hindered supplies. “Outside of semiconductors, aspects of container movement, freight rates,and the huge increases in input costs are also worldwide issues, and therefore they affect India too."
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