As a part of its growth strategy plan, Robert Bosch has purchased the stake of its partner Daimler in the joint venture EM-Motive, which was formed to create electric as well as hybrid car motors. Situated in Germany, the factory will witness an expansion to cater to the burgeoning demand for EVs (Electric Vehicle), which is set to increase further as regulators impose stern restrictions on the combustion-engine vehicle emissions.
According to Bosch, nearly 20 percent of all automobiles will be either electric or hybrid vehicles by the end of next year. Bosch mentioned that EM-Motive currently electric motors to Volvo, Daimler, PSA Group, Porsche, and an emerging automotive manufacturer StreetScooter etc., and is planning to expand its reach by tapping new customers.
Though the leading engineering company refused to reveal any transaction financial details, the company clarified that it was always in its hands to purchase the JV partner this year.
Speaking on the matter, a representative from Daimler said that the joint venture will continue to be a supplier, obtaining electric motors from various suppliers globally. The automotive company workers have been campaigning to start internal production and development of electric motors to end the automaker’s dependency on secondary suppliers.
Full acquisition of EM-motive is a logical and well calculated step being taken by Bosch in a strategic move to speed up its progress in the direction of gaining a pole position in electromobility market.
Bosch and Daimler created the company back in 2011, holding a 50% stake each so as to shoulder the hefty startup investment required to start manufacturing the motors. Since then, it has created around 450,000 electric motors. Bosch added that it expected a complete acquisition of the firm from the outset, and secured an opportunity to purchase all the shares when the company came into existence.
The acquisition comes especially when the regulators are cracking down on CV emissions. By getting the full ownership of Motor JV, Bosch will be in a position where the company can boost its electrified vehicles, and can then meet the demand for the electric vehicles, which is expected to increase further in the near future. Many automotive companies are taking initiatives and putting in efforts to expand their EV portfolio. EVs are a cleaner and greener alternative to combustible gases emitting vehicle, but they pose many infrastructure challenges other than the availability of plentiful charging points.
Mohit Loshali, an experienced campaigner, writes about the latest evolutions and trends in the automotive and allied domains. He has helped clients from across the globe with his thought-provoking research and analysis.