Bosch Sees Continued Growth in Combustion Technologies in India

Bosch Ltd expects combustion technologies to continue recording volume growth in India over the coming years, as demand for conventional and alternative powertrains continues alongside the transition towards electric mobility.

The automotive technology supplier said it will continue supporting combustion technologies, including developments required to meet tighter regulations, while simultaneously expanding its presence across electrification, software-defined vehicles (SDVs), ADAS and other emerging automotive technologies.

“There is also a momentum which will carry combustion technologies forward, including maybe some alternative fuels. This progression will continue in the next many years to come,” Bosch Ltd management said during the company’s Q1 FY27 earnings call.

“We see this, including volume growth in combustion technologies, continuing to happen,” it added.

Bosch Power Solutions Business Grows 29% in Q1 FY27

The comments come as Bosch’s Power Solutions business recorded strong growth during the April-June quarter. The business grew 29% year-on-year in Q1 FY27, with the company saying it outperformed growth across passenger vehicles, commercial vehicles, off-highway vehicles and tractors.

Bosch attributed the performance largely to higher volumes, as well as some new product introductions made over the previous two quarters.

Overall, Bosch Ltd reported revenue from operations of around Rs 5,842 crore during Q1 FY27, an increase of 22% compared with the corresponding quarter last year. Automotive product sales grew 25.7% year-on-year.

Regulations to Create Further Opportunities

The company expects upcoming regulations to provide another growth opportunity for its Power Solutions business.

Bosch specifically pointed to the upcoming CAFE 3 regulations, saying the regulations “should be an even better boost” for the business. It also highlighted upcoming regulations in the commercial vehicle segment as another area that could support growth.

“There is possibly also upgraded legislation in combustion technologies as we move forward, and we are certainly leading that way,” management said.

Bosch said its approach remains technology-neutral and will be determined by demand from automakers, the market and regulatory requirements.

“We are a technology company and we will support and continue to support whatever technology that the market demands,” management said.

The company pointed to SDVs, electrification, CNG and ADAS among the technologies represented in its portfolio.

EVs Already Part of Mobility business

Bosch said electric vehicle technologies are already part of its Mobility business in terms of technology, products and its plans, even if their contribution is not yet significant in terms of revenue.

Bosch-Tata AutoComp Electric Axle JV and EV Plans

The company also highlighted its proposed joint venture with Tata AutoComp Systems for electric axles. The joint venture is currently going through regulatory approvals and is expected to operate from Nashik.

Bosch said revenue from the electric axle joint venture is expected to start towards the latter part of next year.

Beyond electrification, Bosch expects new technologies and increasing vehicle volumes to support its automotive business over the next three to five years.

Management identified vehicle volume growth, new product introductions, and changes in product mix and technology as key drivers of revenue growth over this period.

Commercial vehicle ADAS was specifically highlighted as a new technology opportunity, with Bosch expecting activity in the regulated market to begin from next year.

Bosch Two-Wheeler and Aftermarket Business Growth

Bosch’s Q1 performance also reflected growth beyond Power Solutions. Its two-wheeler business grew 41.4% during the quarter, with management saying it had gained market share following new product introductions with OEMs.

Mobility Aftermarket also returned to growth after a relatively subdued period last year. Bosch attributed the improvement to changes in its approach to the market, expansion of its workshop network and additions to its product portfolio.

For combustion technologies, Bosch’s outlook remains one of continued volume growth even as newer powertrains become a larger part of the Indian automotive market.

The company expects vehicle volumes, new products, alternative powertrains and tighter regulatory requirements to provide growth opportunities across its automotive portfolio over the coming years.