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Bosch to build innovation park for commercial vehicles in Wuxi

China Daily | Updated: 2024-10-23 10:15
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A technician works at Bosch Powertrain Systems Co Ltd in Wuxi, Jiangsu province, in February 2020. [Photo/Xinhua]

NANJING — German multinational giant Bosch Group signed an agreement on Oct 16 to set up its strategic commercial vehicle China headquarters in Wuxi, East China's Jiangsu province, indicating its bullishness on China's new energy vehicle and smart driving industries.

The agreement was inked between the company and Wuxi high-tech district during a ceremony celebrating the 20th anniversary of Bosch's subsidiary in Wuxi.

According to Bosch, the project aims to build an innovative industrial park for commercial vehicles, focusing on providing technological solutions in fields of vehicle electrification and assisted driving.

The company has already established several automotive-related factories in Wuxi, with total sales reaching nearly $3.8 billion last year.

"The strategic cooperation agreement serves as a catalyst for the smoother commercial vehicle business restructuring in China and marks another milestone in the long-term partnership between Bosch and Wuxi," said Thomas Pauer, president of Bosch's Powertrain Solutions division. "By signing it, we aim to further localize our innovative products for the commercial vehicle business and unleash our full potential to help shape the future of low-carbon mobility together."

The new energy sector constitutes one of Wuxi's rapidly growing industries. China has long been the world's largest market for new energy vehicles, and despite facing undue policy pressures from some Western nations, masses of companies within the automotive supply chain remain confident in China's manufacturing and market advantages.

"As one of the first foreign companies to invest in China since the country's opening and reform, Bosch has been deeply integrated into China's economic development and growth journey," said Stefan Hartung, chairman of Bosch's board of management, at the ceremony. "We see China as a key strategic market for Bosch, and as playing an essential role in our global strategy. Our efforts have led to significant success, making China Bosch's largest market outside of Germany."

He noted that Bosch has been continually enhancing its capabilities in the Chinese market, leveraging local talent and infrastructure.

"With this strong foundation and a steadfast commitment to our 'local for local' strategy, Bosch remains dedicated to increasing investments in China, expanding our strategic presence, and driving growth through technological innovation," Hartung said.

Bosch's new project in Wuxi underlines China's undiminished allure for foreign investors, particularly as the country continues to foster high-quality development.

From January to July, China's actual use of foreign direct investment exceeded 500 billion yuan ($70.2 billion). As the country fosters high-quality development, foreign investment is shifting from short-term "hot money" to long-term commitments with stronger institutional and innovation capacities.

For instance, in April, Volkswagen announced an investment of 2.5 billion euros ($2.71 billion) to expand its innovation hub in East China's Anhui province, following the establishment of Volkswagen's research and development center in Anhui.

High-tech manufacturing is a key driver of FDI in China. In the first seven months, the proportion of actual FDI in high-tech manufacturing increased by 2.6 percentage points from 2023.

"We are fully convinced that this new setup in Wuxi will pave the way for enhanced collaboration, ultimately contributing to a low-carbon transportation future, not only in China but globally," Hartung added.

Xinhua

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