The Brose Group, the fourth largest family-owned automotive component suppliers globally, has approved an investment plan of up to 2 billion euros (Rs 15706 crores) by 2021 to tide over the sluggish vehicle market conditions. The company’s board expects the situation to stabilise next year and is also forecasting a growth in turnover. Brose aims to intensify access to innovations and open up new areas of business through participation in startups.

The company’s Berlin-based e-bike division is also strengthening its activities, especially with regard to development capacities and dealer service. The development expenditure for future technologies is expected to rise sharply, while partnerships and acquisitions are planned to expand the company’s market position. Although the Brose Group’s turnover fell by two percent to 6.2 billion euros (Rs 48688.6 crore) in 2019, high ramp-up costs for new products negatively impacted earnings.

While it will be adding personnel in IT, software and electronics, Brose will dramatically reduce its sponsoring expenses in the future, particularly in sports. Michael Stoschek, chairman of the Brose Group is optimistic about the company’s future plans, “I am very confident that the newly appointed executive management board will tackle the many different and complex tasks with great élan. And if in doing so we become leaner, faster and more innovative, we will have everything we need to be stronger for a successful future.”