Bosch CEO expects cut-throat competition to continue in 2026
Key Highlights
- Bosch CEO Stefan Hartung says competitive pressure will persist in 2026 amid trade barriers and price declines
- Company forecasts 2025 sales growth of 1-3% from 2024's 90.5 billion euros
- U.S. tariffs on auto imports remain an uncertain factor for European automakers
- Bosch remains cautious about entering battery cell production due to high costs
Bosch, the world's largest auto parts supplier, expects competitive pressure in the automotive sector to continue through 2026 as the industry faces growing trade barriers and declining prices, CEO Stefan Hartung said Sept. 9 at the IAA auto show in Munich.
Speaking to Reuters, Hartung said 2026 would see continued innovation and technological developments but warned of persistent challenges. "But believe me, the industry will remain under pressure. It will continue to be limited in terms of volume. Structural adjustments will continue due to the shift in value creation, and it will remain a highly competitive sector where there will be a fight over every cent," he said.
The comments highlight ongoing challenges facing European automakers and their suppliers, including uncertainty around U.S. tariffs on automotive and parts imports. Hartung said the impact of these tariffs cannot yet be quantified, with clarity expected in the coming months.
The current situation involves U.S. tariffs of 27.5% that remain in place despite European Union steps that would enable Washington to reduce them to 15%. Hartung said this situation cannot yet be described as stable.
Bosch forecasts sales growth of 1-3% for 2025, with Hartung suggesting growth could reach about 2% from the company's 90.5 billion euros ($106 billion) generated in 2024. However, he said it was too early to provide firm numbers.
When asked about potential entry into battery cell production—a move the company rejected years ago due to high costs—Hartung said Bosch's position remains unchanged. "This is no easy terrain, and we will definitely not make any spontaneous decisions now that could ultimately prove dangerous for the company," he said.