Bosch lobbied the Chinese government for a promising outlook for the development of diesel vehicles

Bosch is actively lobbying the Chinese government to promote the development of diesel vehicles, as the market for such vehicles is expected to grow significantly in the coming decade. According to Franz Ferenbacher, chairman of the Bosch Group, the current proportion of diesel vehicles in China is quite low, but it could rise to 15% within the next ten years. In October, Bosch conducted a comprehensive market study on diesel vehicles in Europe and plans to submit the findings to the Chinese government soon, which may lead to new incentive policies aimed at boosting the diesel vehicle sector. As one of the world’s leading automotive parts manufacturers with an 80% global share in diesel systems, Bosch has long been eyeing the Chinese market. The company has been pushing for government support to accelerate its expansion in this area. Several years ago, the Bosch diesel division expressed interest in increasing its investment in China, but progress was delayed due to unclear diesel vehicle policies. Meanwhile, Bosch's gasoline system division entered the Chinese market as early as 1995 through a joint venture with Automotive Electronics Co., Ltd., which has since yielded significant success. This history suggests that Bosch is now looking to gain a similar foothold in the diesel market. Currently, China's diesel engines use mechanical fuel injection systems that meet the European II standard. To reach the EU III standard, electronically controlled fuel injection systems or common rail technology must be adopted. These technologies can significantly reduce engine vibration and noise. A representative from Volkswagen China told the "Daily Economic News" that, considering the large number of heavy trucks in China—around 6 million—raising emission standards from Euro II to Euro III would require replacing all engine systems with advanced technologies. This represents a major opportunity for companies like Bosch. Despite this potential, diesel sedans have faced restrictions in many Chinese cities, including Beijing, where they were banned from entering urban areas due to concerns over pollution. However, diesel engines are more fuel-efficient, saving about 30% of fuel compared to gasoline engines under similar conditions. According to Peng Deyuan, president of Bosch China, the company and the Chinese government have concluded that domestic diesel technology is actually more advanced than gasoline technology. Industry insiders note that the growth of diesel engines in a given market depends on several factors, including oil prices, fuel quality, tax policies, emission regulations, consumer habits, and awareness of diesel technology. While gasoline engines still dominate the Chinese market, tightening fuel efficiency regulations and the upcoming fuel tax policy are likely to boost diesel vehicle adoption. Historically, diesel vehicles have seen strong growth in Europe and other regions. In the 1990s, around 20% of cars in Europe were diesel-powered, rising to 40% by the end of the decade and surpassing 45% in new car sales by 2004. In the U.S., the number of new diesel cars registered increased from 301,000 in 2000 to 470,000 by 2004. In Japan, nearly 10% of cars are diesel-powered. In contrast, in China, only 12,654 diesel cars were sold in 2004, accounting for just 0.6% of total car sales of 2.25 million. With growing environmental concerns and technological advancements, the future of diesel vehicles in China looks promising, and companies like Bosch are positioning themselves to capitalize on this emerging trend.

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