The president of Bosch China, Chen Yudong, is of medium stature and has a mild personality. He often verbally says to the outside world: "Bosch China wants to be a 'Dr.' in China." However, since 2011 he has served as the world's largest supplier of automotive parts. Since the president of China, the situation in the Chinese market has encountered two different kinds of differences. In 2011, Bosch China's auto business grew by 36%, and the construction vehicle sector increased by 100%. In 2012, Bosch's growth rate in China fell sharply. Its consolidated sales in China was 41.7 billion yuan, compared to 2011. The slight decline of 42.3 billion yuan. Over the past ten years, Bosch has maintained a compound annual growth rate of 25% in China, and this is the first time it has been encountered. Recently, Chen Yudong, President of Bosch China, received an exclusive interview and discussed his views on the Chinese market business, manufacturing transformation and upgrading, and the development of China's new energy vehicles. CE: Bosch's performance in China last year was basically the same as in 2011. The major reason for this was Bosch's long-term strategy. Chen Yudong: Growth was flat in 2012, mainly because the growth in 2011 was unusually high. After 4 trillion yuan in the previous year and the year before last, the investment in fixed assets was too strong. Everybody bought trucks, and the growth in the related fields of construction vehicles reached 100. %, that is not normal. The auto industry has grown by 36% and it is also very large. If you want to maintain a growth rate of more than 20% every year, I think it is not normal because the overall economic level of China does not match the increase in your industry. . Therefore, I personally think that we must go back to the era of micro growth and the general trend is to grow slightly. China's GDP growth has already dropped back to 7% or 8%. Bosch wants to ensure that its product growth exceeds this figure. In 2012, Bosch's fixed-asset investment-related business unit's growth rate fell sharply, but it increased compared to the point before 4 trillion, and it was double-digit growth. Due to the unusually high growth in 2011, normal growth in 2012 will not affect Bosch's long-term strategy in China. However, in response to changes in the global market, Bosch's business has been reorganized into four major areas, adding the energy and construction technology business. In China, it will strengthen local management decision-making power, increase the added value of local products, expand the proportion of local procurement, and continue to increase local R&D investment. We expect Bosch China to achieve double-digit growth in 2013. CE: Bosch has made extensive arrangements for new energy vehicles in China. However, the development of new energy vehicles in recent years does not seem to be satisfactory. Does Bosch always maintain high investment? Chen Yudong: In terms of new energy vehicles, Bosch should be the largest investment in multinational companies. We have 200 people working on the team. The joint electronics production line is also well prepared. We have already prepared mass production capacity instead of some companies. Demonstration of production capacity, the two are completely different. For example, SAIC's new energy vehicles are also useful for our products, and Bosch is also actively seeking to become a BYD supplier of new energy brands. Bosch China is spending money every year, about 300 million each year. We believe that pure electric will have a certain market share in the next 20 years, but it will have to be the main road for a long time, because the economic cost, endurance and the bottleneck of the battery are there. These areas cannot be solved, and the government has been relying on the government 60,000. Thousands of subsidies are long-lasting, and such markets are also unhealthy. Bosch believes that in the future, the number of hybrid and electric vehicles will gradually come up, but this will not increase by hundreds of thousands of units a year. Especially pure electric, up to 50,000 units a year. By 2020, the world's share of hybrid and pure electric vehicles will account for up to 15%. More than 80% will be traditional internal combustion engines, and traditional fuel-efficient models such as direct injection and diesel technology will continue to grow. CE: Due to rising labor costs and other factor costs, many manufacturing companies have started to move their production bases from the coast to the inland and even Southeast Asia. This is also seen as part of industrial upgrading. How do you see China's industrial transfer and upgrading and Bosch’s The choice in this process? Chen Yudong: Bosch's factories in China are also open from the coast to Chengdu, relatively speaking, also belong to the industrial transfer, but not because of the low cost to go there, mainly because our customers go there. Industrial upgrading is not a matter of shutting down factories to go out, not revolutionizing but gradually evolving. For example, when it came to investing ten years ago, many multinational corporations have cut off foreign automated production lines and used Chinese artificial production lines. However, in recent years, they have not been able to say no, but the proportion is relatively small. Many of them use automated production lines, including ours. Partners have proposed to let us use more automated production lines. Everyone feels that the entire industry upgrade can no longer rely on human tactics. Indeed, 10 years ago, people who became people became human. Now it is not the case. The new production lines are based on the most advanced standards. Industrial upgrading is a process in which the industrial chain, manufacturing level, and equipment level in production gradually evolve little by little. It is not revolutionary to reduce the cost of human beings in the entire value chain, that is, from the lowest level, the simplest assembly to deep processing, and More advanced processing, this is the process of escalating. It is very common to say that raising the cost of capital accounts for a lower proportion of labor costs. If we have some production lines that are still artificial, we will consider how to make it more automatic when we build new lines. It was definitely not counted before. Now we have to compare them. We have to think about it. Automation is cheap or labor is cheap. There are many low value-added processing and manufacturing industries that will be transferred from China, especially after rising labor costs, and they will go to Southeast Asia. However, what Bosch originally brought is a high value-added thing. For us, it is only how we deepen our supply. The chain does not have purely industrial transfer in order to reduce labor costs. Radiator Valve,Air Vent Valve,Three Way Angle Valve Dazhong Valve Group Co., Ltd , http://www.dazhong-valves.com
Chen Yudong, President of Bosch China Region: The Market Enters the Era of Micro Growth