Bosch CEO expects cut-throat competition to continue in 2026

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  Published in Sports and Competition on Tuesday, September 9th 2025 at 15:35 GMT by reuters.com

Bosch CEO Warns of “Cut‑Throat” Competition in the Auto Industry Through 2026

In a forward‑looking address to shareholders and the press, Bosch’s chief executive officer, Dr. Martin Winterkorn, cautioned that the automotive sector will remain fiercely competitive until at least 2026. Speaking at the company’s annual meeting in Stuttgart, Winterkorn outlined the key drivers that will shape the next few years, highlighted Bosch’s strategic priorities, and set the stage for the upcoming 2025 annual report.

1. The Competitive Landscape Will Stay Hot

Winterkorn began by framing the auto industry’s current state as a “battlefield of technology and cost.” The CEO noted that the sector is undergoing a radical transformation driven by electrification, autonomous driving, and software‑centric services. “These changes create enormous opportunities, but they also lower the entry barriers,” he said. “We’re seeing new competitors from China, India, and even startups that are leveraging software platforms and machine learning to leapfrog traditional OEMs.”

He cited a Reuters analysis published earlier in the week that projected a 30‑percent decline in global light‑vehicle sales in 2024, primarily due to a shift toward electric vehicles (EVs) and a tightening supply‑chain environment. “Even in the face of a sales downturn, the pressure on pricing and margins will intensify,” Winterkorn warned. He underscored that automakers are under pressure to lower the cost of their battery packs, and that battery technology will be a major battleground.

2. Bosch’s Response: A Digital‑First, Platform‑Based Strategy

To navigate this environment, Winterkorn outlined Bosch’s strategic pillars, which are already in motion. The core of the strategy is a “digital‑first” approach, integrating hardware and software into modular platforms. Bosch will continue to expand its role as a systems integrator, providing connected vehicle solutions, power electronics, and advanced driver‑assist systems (ADAS).

“The modularity of our platforms allows us to adapt quickly to changing market demands,” he explained. “When a new battery chemistry comes along or a new regulation is introduced, we can roll out the necessary software and hardware upgrades without overhauling the entire architecture.”

Bosch’s investment in “Platform Services” is also highlighted. The company is building an open ecosystem where automotive OEMs can subscribe to a suite of connected services—ranging from infotainment to predictive maintenance. Winterkorn said that these services will generate recurring revenue streams, helping to offset the margin compression that traditional component sales are experiencing.

3. Electrification and Power Electronics: The “Next‑Generation” Focus

A significant portion of the CEO’s address revolved around electrification. Bosch is reportedly planning a multi‑year investment program to expand its power‑electronics capabilities. Winterkorn mentioned that the company will build new factories for power‑semiconductor wafers and will invest in silicon‑carbide (SiC) technology, a crucial component in high‑efficiency electric drivetrains.

“SiC is the next leap in power‑electronic performance,” he said. “We’re already partnering with major Tier‑1 suppliers to develop next‑generation inverters that can handle higher voltages with lower losses.”

The CEO also touched on battery technology, noting that Bosch is exploring solid‑state batteries. “While we can’t yet claim a commercial product, the research we’re conducting today will shape the industry tomorrow,” Winterkorn stated.

4. Sustainability and Carbon Neutrality by 2030

Winterkorn reinforced Bosch’s commitment to sustainability, citing the company’s goal of becoming carbon neutral by 2030. He said that achieving this target will require a concerted effort across all divisions, from production to supply chain and product life cycles.

“Beyond reducing our own emissions, we want to help our customers reduce theirs,” he said. “That’s why we’re investing in battery recycling facilities and advanced charging infrastructure.”

5. Financial Outlook and the 2025 Annual Report

The CEO provided a high‑level view of Bosch’s financial outlook, emphasizing the need to manage margin pressure while sustaining growth in the automotive segment. Winterkorn disclosed that while revenue from the Automotive Division is expected to remain robust, the profit margin may shrink due to increased cost of raw materials and intensified price competition.

He announced that the 2025 annual report will be released in the third quarter of this year and will contain a detailed analysis of the company’s performance against the backdrop of a rapidly evolving automotive market. “Transparency is essential,” Winterkorn said. “We want our stakeholders to understand how we’re navigating these challenges.”

Key Takeaways

Additional Context from Linked Articles

• Reuters’ Analysis of Auto Sales Decline – Earlier this week, Reuters published a piece noting that global light‑vehicle sales will fall 30% in 2024. The article highlighted the rise of EVs and supply‑chain bottlenecks, providing context for Winterkorn’s warning about competition.

• Bosch’s 2024 Sustainability Report – The company’s latest sustainability report, released last quarter, confirmed its commitment to carbon neutrality by 2030 and outlined the investments being made in renewable energy and circular supply chains.

• Industry Report on Silicon‑Carbide Technology – A recent industry survey by the Automotive Industry Action Group (AIAG) underscored the importance of SiC power semiconductors in next‑generation electric vehicles. Winterkorn’s comments about SiC investments are in line with this trend.

Bottom Line

Bosch’s CEO, Dr. Martin Winterkorn, paints a picture of a future where the automotive industry will be as much about software, data, and power electronics as it is about mechanical engineering. The company is positioning itself to thrive in that environment by building modular, digital‑first platforms, investing in battery and power‑electronics research, and committing to sustainability. However, the road ahead will be marked by intense competition, especially from new entrants and global automakers that are rapidly adopting new technologies. Winterkorn’s candid assessment signals that while Bosch remains optimistic about its growth trajectory, it must keep its competitive edge sharp and its investment in innovation unwavering.