Suppliers Despite the Crisis, Bosch China Increases Revenue

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Bosch China has grown to over 18 billion euros ($21.4 Billion) in revenue. The supplier is already building new locations. However, margins are shrinking, and jobs are being cut.

Bosch is under heavy pressure worldwide, but business in China is going well. While growth of 0.9 percent was achieved worldwide with difficulty, sales in the People's Republic grew by 4.9 percent in 2025 compared to the previous year, the world's largest automotive supplier announced in Beijing.

This growth was not currency-adjusted but based on sales figures in the local Chinese currency, yuan. Nevertheless, it was a real beacon of hope in what was a tough year globally.

Working in an "Unfavorable Environment"

"The economic reality is reflected in our results. 2025 was a difficult and sometimes painful year for Bosch," said Stefan Hartung, Chairman of the Management Board of Robert Bosch GmbH, as the preliminary results of the group were published. They are working on the growth strategy in an "unfavorable environment," according to Hartung.

X-by-Wire Chassis

The New Billion-Dollar Market

Since the automotive market was extremely competitive in China last year as well, the result achieved by the Tier-1 supplier there must be acknowledged with respect. Bosch China reported that it was able to increase its sales to a total of 150 billion yuan (approximately €18.5 billion / $22 Billion) in 2025.

North America Business Surpasses China

"In 2025, Bosch China continued to demonstrate solid resilience in its business despite a complex and challenging market environment," said David Xu, President of Bosch China. "Bosch Mobility remained the most important growth driver, while our diversified business portfolio has further strengthened the foundation for long-term development."

Only in America, including the USA, did Bosch achieve even more growth last year (3.6 percent nominal and 9.2 percent real). The competition in China last year was considered brutal by almost all observers, and some Chinese media reported that Bosch was "surrounded by a pack of wolves."

Bosch Expands New Locations in China

In addition to Bosch Mobility, the company achieved good results in China in the areas of heating, ventilation, and air conditioning (HVAC) as well as in tools and accessories. Overall, the 57,000 employees of Bosch in China generated about 20 percent of the total revenue of the Bosch Group.

Company spokespersons at Bosch China therefore refer to the country as an important pillar of their global business that they intend to continue expanding. This year, a location for electric drives for commercial vehicles is set to be established in Nanchang, a new plant for steering systems in Jinan, and a larger research and development center in Wuxi.

Margins Remain Critical

However, all these good news cannot disguise the enormous pressure that Bosch is under, even in China. A strong price war among Chinese automakers is being passed on to suppliers. Additionally, growing competition from strong Chinese players such as Huawei and BYD in the mobility market is currently causing margins to shrink for all foreign automotive suppliers in China, even as revenue increases.

The preliminary annual results of the Bosch Group indicate that the global operating margin fell from 3.5 percent to 1.9 percent in 2025. In previous years, above-average margins in China often improved such results.

Thus, there is little expectation in the Chinese market. According to Reuters, Hartung was quoted as saying that they would have to "fight for every cent" again this year in relation to Bosch's global business.

Analysis

Europe's Suppliers in a Dilemma

Job Cuts Are Inevitable

In China, Bosch is therefore forced to cut costs by increasingly relying on local suppliers. Recently, a first reduction of 200 positions has been confirmed, primarily in the business areas of internal combustion engines and fuel cells in Wuxi.

Further job cuts in China are expected to be announced during the year, according to Chinese media. However, company spokespersons describe this as "normal" optimization, which is often necessary for companies of this size. There are no "large-scale layoffs" planned in China.

These are intended for Germany. According to Bosch's own statements, the company aims to reduce 22,000 positions in its home country by the year 2030. However, it is clear that without the still robust results in China, the number could have been even higher.