As the global mobility industry continues to evolve, India is gaining significance both as a strategic market and as a centre of engineering development for the German multinational Bosch.

Currently contributing approximately 5% to Bosch's global mobility business, the India division aims to double this share to 10% by the beginning of the next decade.

This growth is expected to be driven by the emergence of software-defined vehicles (SDVs), increasing vehicle volumes, and greater content per vehicle due to electrification and premiumisation, according to a senior company official.

Bosch's global mobility business is currently valued at EUR 55.8 billion (US$ 63.7 billion) and is supported by a network of 490 subsidiaries operating across 60 countries.

India holds responsibilities for global systems and components, supported by Bosch Global Software Technologies (BGSW), which serves as a key development hub. In addition to providing engineering support, India functions as a centre for artificial intelligence innovation and advanced development processes, according to Andreas Dempf, Head of Sales and Customers for the Mobility Solutions business sector at Bosch, in an interview with media sources.

BGSW, a major subsidiary of the Bosch Group, is the global software and technology development arm of the organisation. Dempf noted that BGSW plays a central role in Bosch's global transformation, with its impact extending beyond India.

The company's 24,000 engineers based in Bengaluru, Coimbatore, and Pune form the core of its global software and AI capabilities. These teams are supported by nearshore subsidiaries in Vietnam, Poland, and Mexico, which replicate the work carried out in India while addressing regional requirements - Vietnam for Japan and Mexico for North America.

This global model enables both scale and regional alignment, allowing for efficient and localised implementation across diverse markets.

While Bosch's global two-wheeler headquarters remain in Yokohama, core powertrain responsibilities, for both electric and internal combustion engine (ICE) applications, are shifting to India. Although China continues to lead in electrification, India is becoming a key hub in Bosch's global two-wheeler strategy.

Amidst changing trends, particularly in Europe, Bosch - like several other multinational organisations - is undertaking restructuring efforts, including staff reductions. The primary challenge is to manage performance, restructuring, and transformation while continuing to invest in emerging technologies.

Bosch Mobility's reorganisation

In 2023, Bosch announced a strategic realignment of its automotive supply operations, designating Bosch Mobility as a standalone business sector with an independent leadership team and full operational responsibility. The Board now supervises hardware components, including electronics, semiconductors, and sensors, alongside software development.

Dempf noted that while Bosch traditionally approached development from a hardware-first perspective, supported by software, the company is now adopting a software-first mindset. This shift prioritises software and electrical and electronics (EE) architecture in shaping future vehicle development. Industry discourse is expected to increasingly centre on EE and software architecture.

Although hardware continues to be developed by individual business units, Bosch is redefining how it positions its offerings in the market. According to Dempf, the transformation is ongoing and will progress gradually.

He observed that major changes are under way, with steering, braking, and suspension functions beginning to converge onto a single software platform, enabling the transition to software-defined vehicles (SDVs). This evolution requires a unified operating system and middleware layer to coordinate across domains.

Dempf further explained that evolving platform strategies are adding complexity, as the software-first approach fundamentally changes the development process. The business model is also undergoing change; whereas traditional vehicles required maintenance after purchase, modern vehicles increasingly receive ongoing software updates that enhance features and driver assistance capabilities throughout their lifecycle.

Electrification and multi-fuel strategy

Although electrification in India remains at a nascent stage, particularly in the two-wheeler segment and in power electronics for four-wheelers, the content per vehicle is increasing due to deeper technology integration, stated Sandeep Nelamangala, President of Bosch Mobility India.

He identified three key factors that will shape the electrification landscape in India: the introduction of CAFE-III norms in 2028 and the country's current fuel mix; growing consumer demand for comfort, convenience, and premium features; and government policies aimed at reducing fuel imports by promoting electrification.

Globally, electrification currently constitutes a relatively small portion of Bosch's business, with China being an exception. In China, Bosch ranks among the top three suppliers and is involved in over 30 electrification projects.

Dempf noted that hybrids, plug-in hybrids (PHEVs), and range extenders remain essential components of original equipment manufacturers' (OEMs) product portfolios, particularly in Europe where legislative frameworks continue to evolve. He stated that earlier expectations for a rapid transition to battery electric vehicles (BEVs) in Europe were overly optimistic. While BEV adoption has stagnated in Europe, it continues to rise in China alongside hybrids and range extenders.

He also highlighted a short-term operational challenge in the powertrain transition: the risk of production line idling, which is creating pressure on suppliers.

For the Indian market, Nelamangala emphasised the importance of a multi-fuel strategy, with a differentiated approach tailored to each vehicle segment.

Bosch, which has significant experience in diesel and gasoline technologies, is leveraging Brazil as its global competence centre to support similar developments in India. It is positioning India as a potential hub for ethanol-related innovation. The company is also considering relocating development work for electric two-wheeler powertrains and conventional gasoline fuel injection systems to India.

In relation to hydrogen technology, Bosch is advancing both hydrogen-powered ICE engines and fuel cells. A central competence centre has been established, along with demonstrator projects, and collaboration with OEMs is ongoing. Over the next two to three years, the focus will be on collecting real-world performance data to evaluate the technology's viability.

However, successful hydrogen deployment will also depend on the availability of infrastructure and affordable supply, making large-scale adoption a complex challenge.

China's lead in ADAS

In the field of autonomous driving, China is making significant advancements, with BYD's recently introduced 'God's Eye' system serving as a notable development. The Chinese market is moving toward the adoption of advanced driver assistance systems (ADAS) as standard across various vehicle segments, especially at Level 2 and the emerging Level 2+, which enables hands-off but eyes-on driving primarily on highways.

Dempf stated that there is increasing exploration of urban applications, with current innovation focused on enhancing Level 2+ capabilities through the use of generative AI.

Although Bosch is headquartered in Europe, the company believes its substantial ADAS presence in China will play a key role in maintaining its position in this evolving technological landscape.