Bosch Ltd Achieves 8.1% YoY Growth in FY 2024-25, Amid Global Economic Challenges

Bosch Ltd, a leading technology and services company, has reported a year-on-year growth of 8.1% in revenue and 16.1% in EBIT for the FY 2024-25. The company's performance was robust, despite the global economy facing significant challenges, as highlighted by the International Monetary Fund (IMF). The IMF has projected a lower global growth for 2025 of 2.8%, marking the slowest pace since 2009. This decline is attributed to several regional wars, policy uncertainties caused by trade tensions and tariffs, which have disrupted global supply chains. Advanced economies, including the U.S., were particularly affected, with growth forecast for developed economies lowered to 1.4% for 2025. Emerging markets, such as China, also experienced downward revisions due to their export dependencies. High inflation driven by services have remained a concern leading to prolonged higher interest rates in the US, with Fed not embarking on rate cuts so far in 2025. In an environment of unilateral tariffs, the need of the hour is for multilateral cooperation and structural reforms to mitigate risks and promote sustainable growth in this challenging economic environment. Indian Economy For FY2025, as per National Statistics Office (NSO), India’s preliminary real GDP growth is estimated to be 6.5%, supported by government capex and gradual private investments. Growth was witnessed in few key sectors of construction, defence and other services (financial, real estate etc.), despite declining urban demand and global challenges. Manufacturing sector has been steady, while the services industry has exhibited strong performance. Purchasing Managers' Index (PMI) for manufacturing at 58.4 in June 2025 and PMI for services at 60.4 driven by robust demand, however an intensifying input prices has also been seen. The RBI under a neutral policy stance, has delivered 100 bps of rate cuts in the year 2025 so far, amidst declining Consumer Price Index (CPI) of 2.1% in June 2025; IMF projects a GDP of 6.2% for the year 2025. Indian economy is expected to ride out the tariff battles due to strong domestic economy, however, may get impacted indirectly on second order effects of global trade. India is expected to be the leading growth beacon compared to rest of the world, in 2025 and 2026. Indian Automotive Industry and Market Scenario 73 Annual General Meeting | Aug’2025 Automotive Market Prognosis | Production Outlook FY24 FY26 FY26 EY FY25 Peak Actual Actual 5.09 2025 0.48 2019 0.68 2024 1:07 2023 1.27 2019 24.50 2019 BePBHD All units are in mio. pcs. BOSCH In 2024-25, despite global uncertainties and elections, India’s automotive industry showed resilience. Passenger car sales grew by 3.6%, led by SUVs, while 2-wheelers surged by 11.2% due to strong domestic demand and EV adoption. 3-wheelers rose by 7.1% from e-commerce growth, and tractors rebounded by 7.7% after last year's dip. Light and heavy commercial vehicles declined slightly due to competition from electric 3- wheelers and project execution delays resulting from general elections. The Electric Vehicle (EV) market expanded across all segments, especially electric 2 and 3-wheelers, aided by urban demand, government incentives, and infrastructure growth. Segment highlights: . Heavy Commercial Vehicles (HCV) fell 1.3% due to a high base; however, demand for buses rebounded. . Light Commercial Vehicles (LCV) dropped by 5.1%, driven by demand for electric 3-wheelers. . Passenger cars hit a new peak of 5.1 million units, driven by utility vehicle demand despite inventory challenges. . 3-wheelers grew on electrification and e-commerce demand. . 2-wheelers grew by 11.2%, boosted by rural recovery and EV adoption. . Tractors recovered late in the year, growing 7.7%, helped by good monsoon and rural investments. Overall, the industry is shifting towards electrification and rural-driven demand leading to a 9.1% growth in vehicle production.