Bosch · tone and specificity signals across the available quarters.
Language signals
The timing is right for us. Also, there have been some shifts of our production out of Russia, so a lot of spark plugs, which were earlier made in our Russian location, have moved out, and they've been relocated into India.
If you look at the margins in the ICE business for manufactured goods here in India, we are seeing actually that we have for the self-manufactured goods, quite good margins on the market.
We are in the process of aligning the portfolio. I don't see a gap, but this would take time before we are able to bring together the specifications of the global platforms and the local requirements.
We do not currently foresee a major change in our export portfolio right now, but the intent is that we continuously increase this.
Too early localization also is totally counterproductive in terms of our margin. So we will have to balance it against when is localization most appropriate.
We did now the first step, coming back to a double digit, which was very important for us, and we do everything to keep this double digit.
We are on plan and we will continuously increase localization.
We see an impact. We see inventory coverage until end of August. We are working on several options.
Continuously increasing our exports is one of our targets.
The real cure for this issue is having much higher localization effort than what we have today, and that is the effort we are putting in.
We are talking about a mid-term. So we are going ahead, but doing a localization with all the quality releases, with the cross-checks, with the customers releases, et cetera, and this is also quite complex technologies.
We see a slow but sustained recovery.
We are constantly looking at our product portfolio, our business activities in the listed company, and also business activities outside the listed company in the Indian context. We are very open to look at and re-arrange these things.
We are doing our best to ensure the excellent business performance under difficult, currently slightly difficult market conditions.
It's a mix. This month, we had favorable product mix on the one side. But, of course, we are going ahead with the localization, and step by step, we see what we implement here in India.
We are confident in our ability to navigate these cross-currents, optimizing our operations to capture growth from India's buoyant domestic demand, particularly within the auto sector, and deliver consistent value.
The margin pressure will remain. It is a tough entry business right now, but we will see how to make this better as we go along.
We are very well prepared to handle the increased demand that's likely to come out of any changes in legislation.
We believe, certainly, the two-wheeler commuter segment of scooters will have significant growth in electrification in the coming years.
We will not do this to completely spoil everything with regard to our overall margin profile.
We are doing what is required in the Indian market and what the Indian OEMs are asking.
We have a very good plan to go further ahead with the productivity, etc. So therefore, you have some time to make some adjustments. But this is not a beginning of everything.
I wish you were at the Bharat Mobility Show, and there you could have seen a flavor of this as well.
We have full visibility of the rest of the Bosch International Production Network as well. We know what's happening globally in terms of slowdown, what is likely to happen as well.
The global economy is adjusting to a landscape reshaped by geopolitical events and realignments in the trade relationships among countries.
We are in advanced discussions with several OEMs, and as we go forward in the coming quarters, we will let you know the exact nature of these things.
The most important thing or the philosophy of Bosch is we try to do local for local. Therefore, volumes are much more important than an FTA or import duties whatsoever.
We expect between 10%-15% of all trucks sold by 2030 to be with hydrogen ICE technology.
We are working on this, and together with the board, we'll let you know.
Localization is key also in the, as you rightly said, third-party supplier development, as well as in our own plant. Therefore, there is no change.
This cutting-edge line, featuring multi-gas calibration and SCU software flashing, not only enhances India's role in our global value chain, but also prepares us for future product introductions.
We are screening, of course, all the PLIs constantly. Currently, as Ko already mentioned, this plant is not ready for the PLI, but we are screening all the time.
We want to enter as many new areas with customers as possible and be the leading supplier to OEMs and stay on top of the race.