Despite industry challenges, Bosch remains optimistic about 2025, prioritising strategic investments in North America and silicon carbide chip production, while implementing cost-cutting measures to navigate a fluctuating market.
Despite encountering quite a few hurdles in the global car industry, Bosch is still expecting a modest uptick in its automotive supplier division this year. The company predicts that sales will rise by roughly two percent, which, honestly, is pretty resilient given the sluggish vehicle production, weaker demand overall, and setbacks in electrification and automated driving tech. This outlook was shared during the IAA Mobility fair in Munich—so, it seems Bosch has the resilience to grow even when the broader market kind of stagnates. Last year, the automotive supplier side saw revenues dip slightly—by about 0.7 percent—to €55.8 billion, which still made up more than 60 percent of Bosch’s total revenue, that topped €90 billion.
Bosch’s range of products isn’t limited just to classic automotive parts like powertrains, safety features, steering, brakes, and sensors. They also supply automakers with high-performance computing hardware, customized to meet software needs. It’s a combo that Bosch CEO Stefan Hartung points to as a real edge in the market. Hartung mentions, “Bosch can do both—software and hardware,” and he adds that no matter how advanced the software gets, a vehicle can’t move without some pretty sophisticated hardware underneath. That said, pushing toward software-focused mobility will likely squeeze profit margins further, which means the company will need to keep cutting costs across all divisions.
The giant industrial company has been feeling the pressure on competitiveness in several areas, notably in the automotive supplier business in Germany, but it’s not just there—sectors like heating, household appliances, and power tools are also feeling the pinch. To tackle this, Bosch has rolled out some pretty comprehensive cost-cutting plans since late 2023. These include substantial layoffs around the world, especially in Germany’s supplier operations.
Looking into 2025, Bosch is cautiously optimistic. They’re forecasting organic sales growth of somewhere between 1 and 3 percent after adjusting for currency fluctuations, as per their early May 2025 statements. It’s a careful stance—maybe even a bit conservative—given ongoing global trade uncertainties, volatile markets, and potential hurdles from tariffs and infrastructure investments in Europe and Germany. Still, Bosch managed to increase sales by around 4 percent compared to the previous year in the first quarter of 2025. That’s quite a contrast to Schaeffler, a competitor that reported a drop of nearly 3 percent. Shows the overall softness in the automotive parts industry, you know? Bosch aims to hit an operating margin of 7 percent by 2026 but admits that reaching that target won’t be easy. They’re expecting to reduce their workforce further, especially in Germany and across Europe, though they haven’t provided concrete timelines or numbers yet.
Despite all this, Bosch remains confident about its strategic position, especially in North America. Even with new U.S. tariffs announced earlier in 2025, the company emphasizes its “local-for-local” production approach—along with an integrated international network—which allows it to stay flexible and efficient while serving various markets. This strategy really underscores Bosch’s long-term commitment to North America and hints at plans to keep expanding there.
On the tech front, Bosch is making significant investments, particularly in semiconductors critical for electric mobility. In December 2024, the U.S. Commerce Department reached a preliminary deal to give Bosch up to $225 million in subsidies to support a $1.9 billion project at a plant in Roseville, California—focused on making silicon carbide power semiconductors. This project is part of a larger U.S. effort to bolster domestic chip production, which is worth around $52.7 billion and aims to position Bosch as a key supplier for electric vehicles, telecom, and defense by 2026. Once up and running, this plant should produce over 40 percent of the U.S.’s silicon carbide device capacity.
Additionally, Bosch announced in April 2023 that it acquired U.S.-based TSI Semiconductors, planning to invest more than $1.5 billion into upgrading its Roseville site for silicon carbide chip production. On top of that, they acquired HydraForce, an American hydraulic tech firm, integrating it into Bosch Rexroth to expand its industrial offerings.
Of course, even with these ambitious moves, Bosch’s financial execs remain cautious. In April 2024, CFO Markus Forschner pointed out ongoing cost pressures and job cuts, especially with vehicle production stagnating and intense pricing competition, notably in China. The company is projecting revenues to grow between 5 and 7 percent in 2024, and operating margins might hold steady or slightly improve from around 5.3 percent in 2023. Still, Forschner emphasized that market conditions remain tough, and that restructuring and process improvements are ongoing slowly.
All in all, Bosch's measured growth outlook and its strategic investments reveal a company carefully navigating the ongoing transformation in the automotive supply chain. It’s no surprise that Bosch continues to lead as the world’s top automotive parts supplier—reporting annual sales exceeding $50 billion back in 2022—and it remains a central player in shaping the future of mobility, for sure.
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Source: Noah Wire Services