Engine management systems to drive exports from India: Bosch

Global automotive components and services supplier Bosch is betting big on making India an export hub especially for its engine management systems (EMS). Speaking to CNBC-TV18’s Ronojoy Bannerjee, Geoff Liersch, Global Head, Two Wheeler Division & Senior Management Officer, said that EMS made in India will be exported to Brazil, China and other Asian countries. Bosch aims to generate one billion euros from its two-wheeler division by 2020, one-third of which is expected to come from India. The company is also considering assembling and localizing anti-braking systems in India. Below is the verbatim transcript of Geoff Liersch’s interview with CNBC-TV18's Ronojoy Banerjee.Q: What is the target that Bosch has set out for the motor cycle two wheeler division?A: On a global basis we are targeting 1 billion euro in 2020. A fairly ambitious target but certainly something that we believe we can achieve.From an India perspective it is an extremely important part of that overall 1 billion euro target. A significant portion will come from India. As I mentioned before the legislation coming on the ABS side and also the potential of EMS legislation. This would clearly drive the take rate in the Indian market.Q: So, can you give us an idea of how much India will contribute to that?A: I really expect - depending on how things pan out from a regulation point of view - that certainly a third of the 1 billion euro would be here in the Indian market.Q: By 2020?A: By 2020.Q: Tell us in terms of how do you look at the India market overall because we have seen two wheeler volumes over the last 12-15 months have been rather tepid in India. So, going forward what is really your forecast, how do you look at the India market in general?A: We see not just the Indian market but on a global basis we still see growth on motorcycles in general. We are predicting somewhere 3-4 percent growth range over a longer period of time here specifically in India as I mentioned.Q: Will you be making manufacturing ABS then in India and will you be exporting ABS, pretty much what you are doing with the EMS?A: It is clear that we will localise ABS. We are still discussing exactly the time frame that the localisation will occur. But it is also for us, it makes sense when you have a market the size of India. We have to have local support, not just on the manufacturing side but also for calibration, for customer support. This is extremely important to have that locally in India.