Bosch sales driven up by new car market’s resurgence despite hit to consumer goods
Bosch is eyeing a further increase in sales during 2024 despite the global technology giant warning it is not expecting a marked improvement in the UK economy.
The group has announced a revenue of almost £3.5bn in the UK and Ireland for 2023, up from the £3.16bn it reported in 2022. The total is also around seven per cent above its pre-pandemic level.
Bosch, which recently marked its 125th year in the UK, employs more than 6,700 across the country, up by almost 2,000 since 2020.
The company said that the rise in sales was driven by strong performances in both its mobility and industrial technology divisions.
During the year Bosch completed the acquisition of HydraForce, which has its European head office in Birmingham, and invested in London-based Quantum Motion.
“We are not expecting improved market conditions in 2024”
Vonjy Rajakoba, managing director of Bosch UK and Ireland, said: “In a year marked by slow economic growth, high interest rates, low consumer confidence and increased geo-political uncertainty, I’m extremely happy that we achieved double-digit growth with £3.5bn in sales, clearly above pre-pandemic levels.
“In 2023 we celebrated our 125th year of being present in the UK, and these achievements are evidence of the resilience and the resourcefulness of our associates as well as the strength of the company.
“We are not expecting improved market conditions in 2024. The economy is showing slow growth, and forecasts are cautious on automotive production and only a weak rebound is expected in consumer spending. In spite of this, we are confident that we will continue our profitable growth trajectory.”
New car market boosts Bosch’s sales
In a release announcing its financial performance, which did not include any profit figures, Bosch added that its mobility division “recorded significant growth” compared to 2022.
The division is the group’s largest sector in the UK and Ireland, with Bosch stating it benefitted from the new car market recording its best year since the Covid-19 pandemic.
The UK’s new car market saw 17 consecutive months of growth up to December 2023 while the semiconductor shortage eased during the year.
Bosch Mobility includes the Automotive Aftermarket business, which was also up by a “promising margin” as a result of increased demand for automotive repair and maintenance.
The group’s industrial technology division also “started the year successfully and went on to show strong growth that exceeded its 2023 forecast”.
However, Bosch did reveal that while the market share of consumer goods was up and the power tools division “resolutely gained market share, this was in a market that declined overall”.
The group said this was due to a “weak construction sector, the burden of inflation and high interest rates negatively affecting consumer spending”.
As a result, its financial performance was down compared to 2023 but in line with expectations, Bosch said.
But the company did added that its energy and building technology division, which now includes Protec Fire & Security, which is based in Lancashire and was acquired by Bosch in 2021, also ended the year with a positive result.