Mumbai/Delhi: As the global mobility industry evolves, India is gaining prominence both as a strategic market and a powerhouse of engineering innovation for German major Bosch. Currently contributing about 5 per cent to Bosch’s global mobility business, the India division aims to double its share to 10 per cent by the start of the next decade. The rise of software-defined vehicles (SDVs), increasing vehicle volumes, and higher content per vehicle driven by electrification and premiumisation are expected to fuel this growth, said a top company official. Bosch’s global mobility business stands at €55.8 billion, supported by a network of 490 subsidiaries across 60 countries.“India holds global system and component responsibilities, backed by Bosch Global Software Technologies (BGSW) as a key development backbone, and remains a critical pillar of Bosch’s global operations. Beyond engineering support, it also serves as a hub for AI innovation and advanced development processes,” Andreas Dempf, Head of Sales and Customers for the Mobility Solutions business sector at Bosch, told ETAuto.
BGSW in India is a key subsidiary of the German engineering and technology Bosch Group, and serves as its global software and technology development arm.
Dempf pointed out that BGSW is central to Bosch’s global transformation, with its influence extending well beyond India. The 24,000 engineers based in Bengaluru, Coimbatore, and Pune form the core of the company’s global software and AI capabilities. This is supported by nearshore subsidiaries in Vietnam, Poland, and Mexico, which replicate India’s work while catering to regional needs—Vietnam for Japan, and Mexico for North America. This global structure provides both scale and cultural proximity, enabling efficient and localised execution across markets.
Bosch’s global two-wheeler headquarters remains in Yokohama, but key powertrain responsibilities, for both electric and ICE are shifting to India. While China continues to lead the electrification business, India is fast emerging as a central hub in Bosch’s global two-wheeler realignment.
Globally, and especially in Europe with the changing trend in the sector, Bosch is downsizing or “rightsizing” its employee count, as are some other global organisations. The biggest challenge is to “master” performance, restructuring and transformation, while also investing in new technologies.
Bosch mobility’s reorganisation
In 2023, the German company announced a realignment of its automotive supply business, designating Bosch Mobility as a distinct business sector with its own dedicated leadership team and full operational responsibility. The Board now oversees hardware, including electronics, semiconductors, and sensors, as well as software development.
Dempf noted that traditionally, Bosch’s strong hardware divisions led development with software in a supporting role. Now, adopting a software-first mindset, architecture and software take the lead in shaping market narratives. Industry conversations, going forward, will increasingly focus on EE (electronics and electrical) and software architectures.
While hardware assets continue to be developed by business units, Bosch is fundamentally shifting how it presents its offerings. “The transformation is ongoing and will unfold over time.”
Dempf highlighted a major transformation underway as steering, braking, and suspension functions converge onto a single software platform, enabling software-defined vehicles (SDVs). This shift requires a unified operating system and middleware layer to coordinate across domains.
He further explained that as platform strategies evolve, this transformation increases complexity, with a software-first approach fundamentally changing system development. The business model itself is shifting– unlike traditional vehicles that required post-sale repairs, modern cars now receive continuous software updates that enhance features and driver assistance throughout their lifecycle.
Electrification and also the need for a multi-fuel strategy
While electrification is still emerging in India, primarily in two-wheelers and power electronics for four-wheelers, Sandeep Nelamangala, President of Bosch Mobility India said content per vehicle is steadily increasing driven by deeper technology integration.
He also noted that electrification in India will be shaped by three key factors– the upcoming CAFE-III norms in 2028 and the prevailing fuel mix; rising consumer demand for comfort, convenience, and premium features; government policy toward electrification driven by rise in fuel imports.
Globally, electrification still accounts for a small portion of Bosch’s business, with China as a notable exception where Bosch ranks among the top three suppliers and has over 30 projects scaling up.
Dempf noted that hybrids, PHEVs, and range extenders remain key components of OEM portfolios, especially as legislation evolves in Europe. He pointed out that expectations for a rapid shift to pure battery electric vehicles (BEVs) were overly optimistic particularly in Europe, where volumes stagnated last year, while China continued to see strong growth in BEVs alongside hybrids and range extenders.
Meanwhile, he pointed out that a key short-term challenge in the powertrain transition is the risk of idling production lines, which is creating operational pressure for suppliers.
For India, Nelamangala highlighted the importance of a multi-fuel strategy and a tailored approach for each vehicle category.
Bosch, with its longstanding expertise in diesel and gasoline, is leveraging Brazil as its global centre of competence to bring that expertise to India. Looking ahead, it sees India as a hub for ethanol competence. It is also considering shifting two-wheeler electric powertrain and conventional gasoline fuel injection development to India.
Regarding hydrogen technology, it is advancing both hydrogen-fueled ICE engines and fuel cells. “We’ve established a central competence center and demonstrator for hydrogen engines and are collaborating with OEMs on trial projects. Over the next two to three years, the focus will be on gathering real-world performance data to assess the technology’s potential.”
However, successful hydrogen adoption will also rely on infrastructure development and affordable supply, making volume ramp-up a complex challenge ahead.
China’s global lead in ADAS
In the autonomous driving space, China is leading rapid advancements, with BYD’s recent ‘God’s Eye’ system a notable example. The market is pushing to make advanced driver assistance systems (ADAS) standard across segments, particularly at Level 2 and the emerging Level 2+, which enables hands-off, eyes-on driving, mainly on highways.
Dempf highlighted that there’s also growing exploration of urban applications, with the current technology race centering on enhancing Level 2+ capabilities using generative AI.
While headquartered in Europe, Bosch seemed confident that its significant ADAS footprint in China will help position it at the forefront of this innovation-driven race.
