Shanghai, 21 April 2005 — In a press conference themed “Technology Achieves the Beauty of Life” organized by Bosch on the eve of the Shanghai International Auto Show, Christoph Kirsch, General Manager of the China subsidiary of Bosch Diesel Systems – the pioneer and world’s largest provider of Automotives Diesel Systems – predicted that Diesel cars have a good chance to succeed on the Chinese market.

According to forecasts made by Bosch, overall diesel vehicle sales, i.e. Heavy and Light Commercial Vehicles and Passenger Cars, will increase by an annual average of 12% until the year 2007, although the portion of Diesel Passenger Cars is still predicted to be relatively low. By this time, vehicle production is predicted to reach the 1.9 million mark. This will fulfill China’s needs for transportation of people, goods and machinery in order to keep the momentum of strong economical growth. At the same time, China is set to cope with strains on environmental and energy resources. To help China in addressing these issues, Bosch has made it its goal to strengthen and develop the production and research of modern diesel systems in China.

In August 2004, Bosch Automotive Diesel Systems Co., Ltd. has been founded. Bosch Automotive Diesel Systems is a Joint Stock Co., Ltd with Wuxi Weifu group as the partner. The overall investment into this venture over the next 3 years will be about 280 Mio EUR. Starting already this year, Bosch Diesel Systems will localize production in China of components for Common Rail Systems, the advanced technology for modern Diesel Vehicles.

Bosch is presently building an impressive 300,000 square meter site that will include production, engineering/application, research and development, and administration facilities, and will be opened by the end of November 2005. A state-of-the-art Technical Center with about 300 engineers will be part of this modern site. The existing workforce of 1,400 will be increased to 2,000 by the end of this year.

The low consumption and high performance properties of modern diesel engines are commonly recognized. Diesel vehicles equipped with Bosch’s high-pressure diesel injection Systems are around 30% more fuel efficient and due to their high torque provide a lot of driving pleasure. This, together with 25% reduction of CO2 emissions of diesel engines compared to cars with gasoline engines has made diesel vehicles increasingly popular around the world. Vehicles equipped with Bosch’s high-pressure diesel injection systems are the exact counterproof for the image of a smoking diesel. They set a new standard in terms of cleanliness, economy, high-efficiency, noise reduction and driving fun.

In Western Europe, presently about 50 percent of newly registered vehicles are equipped with a diesel engine. Also during the recently concluded Geneva Motor Show, many high-class vehicles sported diesel engines.

Mr. Kirsch believes that the Chinese market’s demand for economically viable diesel solutions could increase rapidly as soon as the Chinese car users learn about the advantages of diesel cars. At the same time, Christoph Kirsch points out that diesel vehicles still face some obstacles in China – such as the diesel’s image and aspects such as missing sulphur-free fuel. However, he is confident that these obstacles will soon be overcome, and therefore, he projects growth in China’s diesel automobile market to be quite significant in the near future.

Christoph Kirsch pointed out that Bosch’s Chinese business partners, are making big efforts to increase the number of passenger cars equipped with diesel engine in China. In 2004 the Audi A6 2.5 TDI — a car that only consumes a mere 5.2 liters of petrol per 100 km when run at a constant speed of 90 km/h — was introduced in the Chinese market. Previously Jetta and Bora diesel vehicles were also well received by the market. Owners of diesel-versions of the Jetta and Bora all responded positively to the vehicles’ low consumption and power. A taxi fleet of 280 Bora TDI in Hangzhou, equipped with Bosch Unit Injector Systems shows that the life time cost of a diesel passenger car, its robustness and cleanliness are decisive arguments when it comes to purchasing such a car. Such good examples will contribute to increasing the demand for cars equipped with diesel engines.

Christoph Kirsch also pointed out that a widespread introduction of diesel vehicles in China will lead to a strong consumer demand for high quality diesel fuels will push the market to introduce diesel fuel with the same standard as Europe’s.

The Bosch Group is the world’s largest supplier of automotive technology. Bosch Diesel Systems, the biggest division of the Bosch Group in terms of sales, has more than 52,000 associates worldwide. In 2004, Bosch sold more than 7 million High-Pressure Diesel Injection Systems, i.e. Common Rail Systems, Unit Injector systems as well as Unit Pump systems.
>
About the Bosch Group

The Bosch Group is a leading global supplier of technology and services. In the areas of automotive and industrial technology, consumer goods, and building technology, some 280,000 associates generated sales of 45.1 billion euros in fiscal 2008. The Bosch Group comprises Robert Bosch GmbH and its more than 300 subsidiaries and regional companies in over 60 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. Each year, Bosch spends more than 3.5 billion euros, or eight percent of its sales revenue, for research and development, and applies for over 3,000 patents worldwide. With all its products and services, Bosch enhances the quality of life by providing solutions which are both innovative and beneficial.

The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.