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, signaling a strategic shift in the automotive industry. According to Franz Ferenbacher, chairman of the Bosch Group, the share of diesel vehicles in China is currently very low, but it is expected to rise to 15% within the next decade. This prediction comes after a recent market survey conducted by Bosch in Europe, which will soon be submitted to the Chinese government. The report is anticipated to influence future policy decisions and incentives for diesel vehicle adoption. As a global leader in diesel technology, with an 80% market share in diesel systems, Bosch has long viewed China as a key growth market. The company has been pushing for stronger support from the Chinese government, aiming to expand its presence in the diesel sector. Several years ago, Bosch had already planned to increase its investment in China, but progress was hindered by unclear policies on diesel vehicles. In contrast, the company’s gasoline system division entered the Chinese market as early as 1995 through joint ventures, achieving significant success. Now, Bosch is looking to replicate that success in the diesel market. Currently, China's diesel engines use mechanical fuel injection systems that meet European II standards. However, to comply with the stricter EU III regulations, electronically controlled fuel injection systems or common rail technology are required. These advanced technologies not only improve performance but also reduce noise and vibration. A Volkswagen China representative told the Daily Economic News that raising emission standards could create a huge opportunity for companies like Bosch, especially considering the large number of heavy trucks in the country. Despite this potential, diesel cars have faced restrictions in many Chinese cities, including Beijing, where diesel sedans were banned from entering urban areas due to pollution concerns. However, diesel engines are more fuel-efficient, saving around 30% compared to gasoline engines. According to Peng Deyuan, president of Bosch China, domestic diesel technology is actually more advanced than gasoline technology. This suggests that with proper policy support, diesel vehicles could gain more traction in the future. The growth of the diesel market depends on various factors, including oil prices, government policies, consumer preferences, and technological awareness. Although China’s automotive market is still dominated by gasoline engines, tightening fuel efficiency regulations and the upcoming fuel tax policy may boost diesel sales. Looking at global trends, diesel vehicles accounted for 20% of cars in Europe in the 1990s, rising to over 45% by 2004. In the U.S., diesel car registrations increased from 301,000 in 2000 to 470,000 in 2004, while Japan saw nearly 10% of cars being diesel-powered. In contrast, in China, only 12,654 diesel cars were sold in 2004, representing just 0.6% of total car sales. With the right policies and growing awareness, the Chinese diesel market has the potential to grow significantly. As Bosch continues to push for greater involvement, the future of diesel vehicles in China looks increasingly promising.

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