On January 24, 2008, the Bosch Group made a significant investment of USD 58 million to build a new plant in Zhuhai, marking the largest project under its security systems division globally. According to Peng Deyuan, president of the Bosch Group in China, the products manufactured at this facility are expected to account for 30% of the company’s total security product output. These will primarily serve the Chinese market and the broader Asia-Pacific region, with an estimated annual value of around RMB 800 million.
As one of the world's top 500 companies, the Bosch Group is the leading supplier of automotive components globally. In 2004, it formed a joint venture with Wuxi Weifu Group, China’s largest manufacturer of diesel fuel injection systems. Bosch held two-thirds of the shares, giving it a dominant position and allowing it to lead the development of core technologies in diesel fuel injection systems within China.
Since then, Bosch has acquired the auto starter and power generation business of SAIC Motor Co., Ltd. through its Changsha branch, further solidifying its role as a key player in China’s automotive industry supply chain.
A domestic diesel engine manufacturer noted that, as a global leader with strong technological expertise, Bosch often enters new markets by acquiring local companies. This strategy allows it to quickly gain market access and influence global industry standards. The recent expansion into the Chinese security system market suggests that more aggressive acquisitions may be on the horizon.
According to the same source, after the collaboration between Bosch and Weifu, Weifu gradually shifted production to lower-tier Euro II products, while higher-standard Euro III and above models were handled by the joint venture. Over time, Weifu’s original technology center was moved to the new joint venture, resulting in a loss of core technology and R&D capabilities. Additionally, Bosch controlled the sales channels, causing the price of P-type fuel injection pumps to rise from 7,000 yuan to 13,000 yuan, effectively dominating the domestic market.
Since 2000, Bosch Security Systems has acquired several well-known companies, including American Dixon Security Equipment and parts of Philips’ communications and video security business. These acquisitions have been integrated under the unified "Bosch" brand.
Bu Luomen, Vice President of Sales for Bosch Security Systems in China, emphasized that the Asia-Pacific region and the Chinese market are central to the company’s global growth strategy. By 2014, it was anticipated that over 25% of Bosch Security’s revenue would come from Asia.
In 2007, Bosch Security accounted for approximately 16% of the company’s global revenue. To meet its ambitious goals, the China business of Bosch Security was expected to double within the next five years.
By 2005, Bosch had invested 600 million euros in China. Between 2005 and 2007, another 600 million euros were poured into expanding its operations in the country. Peng Deyuan stated that the company planned to continue investing at a similar pace and intensity over the next two years, with potential acquisition opportunities also under consideration.
The Chinese security market, especially in video surveillance, has been growing rapidly. For example, the Ministry of Public Security’s “3111 Project,†launched in August 2005, saw investments of 300 million yuan in Dongguan, Guangdong, and 450 million yuan in Daqing, Heilongjiang. Based on such figures, medium-sized cities across China are expected to see investments in the billions. Alongside traditional security firms, many IT companies have entered the sector, including Digital China, Shanghai Bell, Skyworth, TCL, H3C, D-Link, Panasonic, Sony, and Samsung, all of whom have established a presence in the market.
According to the sources, the entry of international giants like Bosch into the Chinese security market is expected to drive technological advancements and reshape the industry landscape.
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