Sunday, March 29, 2015

Bosch eyes motorcycle segment for next wave of growth in India

Bosch Group, the Euro 33.3 billion supplier of automotive components and technologies, is looking at the two-wheeler industry especially motorcycles segment for the next wave of growth. The company has created a new business unit – Two-wheeler and Powersports – to tap the growing markets like China, India, Japan, the US and Europe for its new technologies and products like the Engine Management Systems (EMS).

The Germany-headquartered group has developed a bouquet of products for the motorcycle segment.

“Bosch technology for more efficiency and safety should be part of any car, and in the future, the same will go for motorcycles,” Dirk Hoheisel, member of the board of management at Robert Bosch GmbH said. “We are aiming to become a leading supplier in the motorcycle market, too,” he said.

Two-Wheeler and Powersports is part of the Bosch Mobility Solutions business sector. With its headquarters in Yokohama, Japan – the very heart of the international motorcycle industry – and branches in the United States, Europe, India, and China, Bosch has a global reach here.

The new business unit offers safety solutions such as ABS and Motorcycle Stability Control (MSC), a type of ESP for motorcycles.

Bosch has already pioneered the ABS or anti-lock breaking systems (ABS) for two-wheelers, which is now a standard feature in many high-end motorcycles in India. This system prevents the front wheel from locking up, which is a frequent cause of accidents and casualties, especially when road or weather conditions are poor. Bosch's latest innovation in this area is the engine management system (EMS) for two-wheelers.

“We can adapt this system to any kind of two-wheeler allowing Bosch to offer solutions ranging from high-performance bikes to the affordable single-cylinder two-wheelers that play such a significant role in Asia, and particularly in India,” a Bosch spokesperson said. “Our focus is on safety, connectivity and emissions,” he added.

Bosch is in talks with original equipment manufacturers (OEMs) in the Indian two-wheeler industry to customize its products and solutions.

Compared with common carburettor engines, two-wheelers equipped with EMS can reduce fuel consumption by up to 16 per cent – which means that every day running costs are reduced. Moreover, emissions are much lower, which means they are capable of complying with future emissions legislation. This also supports the Indian government’s plan to introduce stricter emission standards for two-wheelers, and thus make motorcycles and e-scooters cleaner, Bosch said.

In addition to powered two-wheelers, the new business unit will serve the market for special-purpose vehicles such as quads, personal watercraft, and snowmobiles.

Globally, the need for affordable mobility is on the increase, and this is pushing demand for powered two-wheelers. Studies indicate that by 2021, more than 160 million two-wheelers will be produced annually – a third more than today, Bosch said in a statement.

“The portion of the market relevant for Bosch, which covers driving safety systems, powertrain technology, and displays and infotainment systems, will double over the next five years,” Hoheisel said.

Most of that growth will take place in Asia, studies suggest, predicting that in 2021, nearly 90 per cent of all powered two-wheelers will be made in China, India and South East Asia. That group consists mainly of small motorcycles with engine displacement up to 250 cubic centimeters, one of the most common modes of transport throughout large parts of Asia.

According to Bosch estimates, some 15 to 20 million two-wheelers featuring modern engine management technology will be sold in India in 2020. This technology reduces mobility costs and protects the environment.

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