Car services growth helps Bosch expand in Middle East

Volker Bischoff, vice president Robert Bosch Middle East, in Dubai. Satish Kumar / The National

Growth in its after-sales car services business is helping Bosch to expand across the Middle East.

The German engineering group already operates 180 service stations in the region with plans to open another 30 by the end of the year. Sales are forecast to grow about 10 per cent this year after Bosch recorded a turnover of €220 million (Dh1 billion) last year.

The automotive market is its biggest earner in the region, driven mainly by the sale of car parts.

In the UAE, Bosch has one service centre in Dubai and two in Abu Dhabi through its agent Central Motors and Equipment.

“In Dubai we service about 120 cars per month. In Abu Dhabi the two stations see 500 to 600 cars each a month,” said Mohamed Kamel, service manager at Central Motors.

The centres cater to all car makes with oil change, replacement of brakes, spark plugs and tyres the most in-demand services. Counterfeit car parts are one of the most commonly seized items by Dubai Customs, and according to Nissan the market in the GCC is thought to be worth $2bn. Bosch is aiming to offer a safer and cheaper alternative for cost-conscious consumers.

“The Middle East for Bosch has been an interesting and important region,” said Volker Bischoff, general manager and the vice president of Bosch Middle East. “We have been doing business here for more than 90 years with our partners. When you look at the last couple of years we have posted strong growth in line with the economic development of the region.”

The return of construction projects in the UAE and Saudi Arabia has also helped to fuel Bosch’s growth in the region, with the company looking to cash in on the number of hotels and malls being built by providing security cameras, sound systems, and access and intrusion controls. It is also eyeing up opportunities in Qatar for the 2022 Fifa World Cup with hopes to provide the technology for retractable roofs at venues as well as stadium sound systems.

The company’s global revenues reached €46bn last year, of which about 70 per cent came from Europe.

Earlier this year Bosch bought out its joint ventures Bosch Siemens home appliances and ZF steering systems. Once both acquisitions meet regulatory approval the company expects its revenue to rise to €60bn per year.

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