Robert Bosch GmbH, the world’s largest supplier of automotive components plans to expand its operations in Saratov – Russia following a profitable year during which the technology supplier saw its sales in the country jump 50 percent to almost 1 billion euros.
Under the localization plan, the company will build assembly lines for generators, starters, accelerators, oxygen sensors and electronic brake systems over 2013 and 2014 in Saratov.
Prior to the global economic crisis, Russia was on track to become the largest single vehicle market in Europe. In 2009, Russian GDP fell by 7.8% due to the credit crisis and the drop in the price of oil – a major component of Russia’s exports.
However, in 2010, new car sales rose by 30 percent to 1,78 million vehicles. Now, companies like VW Ag expects the Russian automobile market to become the largest in Europe, outstripping the German market, in 2014–2015.
Bosch announcement comes shortly after the German giant says production of windshield wiper parts and systems at its planned Serbian plant will begin in July next year and reach full capacity in early 2014.
The factory in Pecinci, west of Belgrade, is to expand to 40,000 square meters as of 2016 and eventually employ 620, she said.
Bosch said total earnings before interest and taxes declined 15 percent in 2011 to 2.7 billion euros. Sales grew 9 percent to 51.5 billion euros.