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 Leasing companies, car parks and technology companies are among the
markets opening up to the business, Rolf Bulander said in an
interview on the eve of the Frankfurt car show.
Bosch's expertise in sensors in particular is helping the company to
expand beyond is core business of providing components such as spark
plugs to combustion engines, he said.
"Thanks to onboard sensors, vehicles can detect a free parking space
and cars can report the position and size of the gap," Bulander
said, adding networked vehicles opened the door to a parking space
management business and other services.
By the end of the year, Bosch will have 200,000 networked cars
offering new kinds of services to client groups such as leasing
companies.
"The companies can monitor the distance driven and set up an early
appointment with a garage if parts are suffering from wear and
tear," Bulander said.
Bosch already expects sales of radar and video sensors -- used in
driver assistance systems such as emergency braking and
sophisticated cruise control -- to double this year. Annual sales of
automated driving assistance systems will reach 1 billion euros
($1.1 billion) by 2016, Bosch said.
The emergence of electric cars has also created new opportunities.
"The increased availability of electric powertrains in the market is
definitely advantageous and makes it easier for new players to enter
the market," Bulander said.
"For us, new market entrants are customers just like established
carmakers. Two examples, we supply Tesla with driver assistance
systems and provided Google with important components for its
vehicles such as the electric powertrain, steering and sensors."
In 2025, Bosch expects 125 million cars to be produced, of which 8
million will be electric cars, 8.3 million plug-in hybrids and more
than 5 million hybrid vehicles.
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"Battery technology is critical for the breakthrough. We expect
battery costs to halve by 2020 and for the energy density to double.
That would be double the range at half the price," Bulander said.
"If this technological breakthrough is achieved, we will think about
manufacturing battery cells," he said, adding it would take two or
three years before a decision was reached.
Asked where Bosch would locate battery production, Bulander said it
would be close to the demand.
"Battery cells are subject to special rules on transportation. You
can't just send a battery like you could a piece of steel. Keeping a
short distance to the customer will be decisive."
(Reporting by Edward Taylor and Ilona Wissenbach; Editing by Thomas
Atkins and Mark Potter)
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