Auto parts giant Bosch attacked China's security market

On January 24, 2008, the Bosch Group invested USD 58 million in the construction of a new Zhuhai plant, which is the largest project in the world for the Bosch Group's security system. According to Peng Deyuan, president of the Bosch Group in China, the products produced by the plant will account for the entire 30% of Bosch Group's total security products are mainly used to supply the Chinese market and the surrounding Asia-Pacific market, with an annual output value of approximately RMB 800 million.

Bosch Group, one of the world’s top 500 companies, is the world’s largest supplier of automotive parts. In 2004, Bosch Group formed a joint venture with Wuxi Weifu Group, the largest manufacturer of diesel fuel injection systems in the country. Bosch has two-thirds of the total. Holding position, which led China's diesel fuel injection system core technology.

Since then, Bosch Group has acquired the auto starter and power generation business of SAIC Motor Co., Ltd. through the Changsha branch, which has become the main producer of China's auto engine industry chain.

“As Bosch Group, a giant that holds core technology in a strong area, usually through the acquisition of domestic companies, it can quickly enter the market and can lead the global industry technology, Bosch such a big move into the Chinese security system market, the next step There should be stronger market acquisitions," said one domestic diesel engine manufacturer.

According to this person, after the cooperation between Bosch and Weifu, Weifu gradually produced only products below Euro II. Products from Euro III and above were basically produced by the joint venture company. The original technology center of Weifu was withdrawn to new The joint venture company has caused Weifu to lose its core technology and R&D initiative. At the same time, Bosch controls the sales channels. The new company will increase the sales price of P-type fuel injection pump products from 7,000 yuan to 13,000 yuan, and completely dominate the domestic market in China.

According to report, since the year 2000, Bosch Group's security system has successively acquired the well-known American Dixon Security Equipment Company and the original Philips' communications and video security system business. In the past few years, all acquisitions have been integrated into a single brand of "Bosch."

Bu Luomen, Vice President of Sales of Bosch Security Systems in China, mentioned: “The Asia-Pacific region and China’s market are the focus of Bosch Security's global business development. It is expected that by 2014, more than 25% of Bosch's security business will come from Asia.”

In 2007, Bosch Group's security business accounted for about 16% of global business revenue. To achieve the above goal, Bosch Security Systems' China business will double in the next five years.

As of 2005, the Bosch Group's investment in China was 600 million euros. From 2005 to 2007, the company invested 600 million euros in expanding business in China. According to Peng Deyuan, the next two years, the Bosch Group It will add additional investment in China at the same speed and intensity, and “is also considering acquiring projects.”

The Chinese security system market represented by video surveillance is growing explosively. Take the “3111 Project” of the Ministry of Public Security that began construction in August 2005 as an example. The investment in Dongguan, Guangdong Province is 300 million yuan, and the investment in Daqing City, Heilongjiang Province is 4.5. 100 million yuan. According to this standard, only the investments of medium-sized cities in China will be counted as billions of yuan. In addition to traditional security companies, a large number of IT companies have also entered. Digital China, Shanghai Bell, Skyworth, TCL, H3C, D-Link, Panasonic, Sony, Samsung and other brands all appeared in this session of the Fair and occupied a certain market position.

According to the above-mentioned sources, “With the entry of Bosch Group and other international giants, the technological changes in the security system industry and the industry reshuffle are inevitable.