Bosch expands footprints in Southeast Asia

Bosch is present in all ten ASEAN member countries and is continuously expanding its footprints across the region.

“Southeast Asia is an important region for the Bosch Group”, said Peter Tyroller, the member of the Bosch board of management responsible for Asia Pacific. “To support growth in the region, we are planning to invest around 80 million euros (about $89 million) in Southeast Asia this year.”

Accordingly, in the first half of 2016 Bosch opened new offices in the Philippines and Indonesia with the aim of being closer to its customers.

The company is also strengthening its manufacturing capacity in the region and plans to expand its Mobility Solutions plants in Malaysia und Vietnam.

Additionally, a new plant in Thailand is planned. In the past ten years, Bosch has invested almost 500 million euros ($561 million) in the expansion of its manufacturing and development locations in Southeast Asia.

Southeast Asia offers Bosch a broad range of opportunities

In 2015, Bosch achieved sales growth of 12 per cent in Southeast Asia, generating sales of more than 780 million euros ($875 million). The company also expects positive development in the current year, despite partially volatile economic development in some of the ASEAN markets.

In the first half of the year, business in the Philippines, Thailand, and Vietnam developed well. There are many factors in the region that bring forth opportunities for Bosch: the large and young population, the growing purchasing power of the middle class, increasing demand for infrastructure, urbanization, and the need to conserve natural resources.

The company also sees potential in the area of connectivity and the Internet of Things (IoT) in Southeast Asia.

Strong local presence

Bosch has been present in Southeast Asia since 1919. Today, the company employs more than 6,800 associates in Singapore, Malaysia, the Philippines, Indonesia, Thailand, Vietnam, Brunei, Cambodia, Laos, and Myanmar.

In the coming years, the workforce is expected to keep growing. The company has manufactured locally for more than 20 years and currently has seven plants in the region.

In Malaysia, for example, Bosch manufactures power tools, products for the Car Multimedia division, and steering systems.

The Bosch plant in Vietnam produces variable transmissions belts for automatic drive systems. In Thailand, Bosch manufactures washing machines, wipers, and gasoline systems.

Southeast Asia is also becoming increasingly important for the Bosch Group’s global R&D network. The company has had development activities in Singapore, Vietnam, Thailand, and Malaysia for several years already.

Since 2010, Bosch has operated its first software development centre in Southeast Asia in Ho Chi Minh City, Vietnam.

Among other things, engineers at the centre work on software solutions for the Internet of Things. This makes Bosch an increasingly important software employer in the region. In Vietnam, Thailand, and Malaysia, the company has implemented the German concept of dual education.

Strengthening of the brand: “We help make a difference”

Besides expanding its regional presence, Bosch is also strengthening its brand communication in Southeast Asia. The first international corporate campaign has been launched in the growth region, with marketing and PR activities on different channels.

The aim is to raise awareness about Bosch in the ASEAN member states – especially in emerging markets such as Indonesia, Vietnam, Cambodia, Laos, and Myanmar.

In fact, Bosch is still largely seen as a manufacturer of power tools in the region. The campaign aims to show that Bosch also offers technologies in many other areas that can improve quality of life, among them automotive parts such as spark plugs, wipers, batteries, brakes, and driver assistance systems that make driving safer and more comfortable.

Other examples include hydraulic systems for marine engineering that support the progress of local industry, and power tools that contribute to better quality in the building sector. Packaging technology keeps foods and beverages fresh, even in high temperatures.

The theme of the campaign is “We help make a difference”. In the dynamic growth region, Bosch is working to develop and offer technology that is tailored to the needs of the local market. In some instances, these solutions are available at a lower cost and meet different specifications.