Bosch Ltd, the Indian arm of German automotive supplier Robert Bosch GmbH, said on August 1 that it plans to increase manufacturing in India over the next two to four years.

The technology supplier intends to increase the percentage of goods produced locally in India in order to reduce component imports, which resulted in a 12% increase in spending on traded goods last quarter.

"Currently, we have roughly 54% traded goods and 46% manufactured goods," CFO Karin Gilges said at a press conference, adding that Bosch intends to shift this ratio in favour of manufactured goods to align with the country's "local for local, in India" ambitions.

Bosch expects sales to increase by nearly 15% in fiscal 2024, owing to increased demand for higher-priced vehicles in the country.

According to data released in April, the Indian market is seeing increased demand for more expensive automobiles such as sport-utility vehicles (SUVs), which accounted for more than half of the country's record 4 million passenger vehicle sales in fiscal year 2023.

 The process by which Bosch will introduce new technology to the Indian market will begin with finished goods, followed by the localization of individual components, according to Gilges.