Here’s Why Bosch India’s Stock Surged This Week

Shares of Bosch India Ltd. surged more than 15 percent since Aug. 28 after its management said the auto parts maker stands to gain from transition to stricter emission standards and electric-vehicle push.

Bosch, the Indian arm of the German engineering and electronics giant, said the Indian automotive industry faces the challenge of rolling out the stricter Bharat VI emission norms by April 2020, according to its annual report. The transition will increase demand for its products, it said.

The push to electric vehicles will be supported by the newly-launched Agile Project unit, the company said. “Significant investments for incorporating smart manufacturing solutions at our Bidadi (near Bengaluru) and Nashik plants are aiding the transformation of our business process,” said VK Viswanathan, chairman of Bosch Ltd.

“Similar investments are planned for our other plants across the country,” he said, adding: “Bosch’s Powertrain Solutions is gearing for the shift to BS-VI emissions norms with a localised portfolio funded by systematic investment into R&D and manufacturing.”

Bosch India, according to the highlights from a recent investor presentation, anticipates a “disruptive regulation and technology change in the Indian automotive world”. It said it will drive transition to the internet of things era by drawing on its innovations.

Key Highlights

• Legislative changes in emission norms, fuel consumption regulations, crash standards and safety norms are opening up opportunities as well as posing as challenges for Bosch.
• The Indian automotive industry is undergoing a disruptive regulation and subsequent technology change.
• BS-VI norms will be applicable for two-wheelers, three-wheelers, commercial vehicles and passenger vehicles from 2020.
• Bosch India has been able to identify the opportunities in the changing automotive industry.
• The company is driving the transition to the internet of things era. It has been developing local solutions to cater to the needs of Indian customers.
• Bosch’s product range is the largest consolidated offering under one brand in India.