With the recent slowdown in EV sales led by shifting consumer preferences back in favour of ICE and hybrid vehicles in major markets such as the US and Europe, technology major Bosch anticipates the demand to continue for conventional powertrains in the foreseeable future.
The company says while the industry initially predicted a linear uptick pattern for EVs, the actual consumer reaction to zero-emission vehicles across key global markets has been completely different. "As humans, we always imagine life in a linear way, but when we look back, that is typically not the case," said Stefan Hartung, Chairman of the Board of Management, Bosch.
Hartung replied to a question from Autocar Professional at the Bosch Tech Day press conference held at the company's R&D campus in Renningen, near Stuttgart, Germany, about its future strategy with the ongoing resurgence in consumer preference for ICE vehicles. "Consumers ultimately decide on which products they want to spend their money on, and can decide completely different to what the industry might have predicted. And that is how it is," he said.
"There are always waves and phases, and if we see a demand shift at the moment, then in the next few years, there will be another demand shift as the shift to EVs must happen for the betterment of the climate," Hartung added.
He explained that while the development of electric vehicles will continue unequivocally, the transition towards cleaner vehicles could be in the form of both fully-electric or partly with combustion engines (hybrids) if they are operated with hydrogen, for example. "It can also take place as hybrids with hydrogen, or with liquid fuels, which are CO2-free," he said.
"Therefore, we have always maintained that we are open to any technology," Hartung pointed out, while adding that EVs will eventually make their way and will benefit a large proportion of cars globally in the next 10-15 years.
Furthermore, the German Tier-1 major plans to continue investing in ICE and hybrid technologies, and align itself in the direction of its OEM customers. According to Markus Heyn, Chairman of the Mobility business sector, Bosch, "While we are still convinced that electrification will make its way, it will not be linear. Therefore, we will continue investing in our competence in combustion engines, and not let it die as it would not be a good idea because the projections three years ago were completely different."