In a recent Presentation given by Dr. Uwe Thomas – president Automotive Aftermarket Robert Bosch GMBH, stated: “Especially connected mobility will change the Automotive Aftermarket.” He made this statement at a roundtable discussion to discuss the Future of Mobility and the Development of the Automotive Aftermarket in Saudi Arabia at the Intercontinental hotel in Jeddah.
Sheikh Khaled Bin Ahmed Al Juffali managing partner and vice chairman at E.A. Juffali & Brothers Co., and Andreas Bodemer, vice president of Middle East and Africa region at Bosch Automotive Aftermarket, were at the discussion.
In his presentation prior to the roundtable, Dr. Uwe mentioned that the Middle East continues to be a key market for Bosch, although the current geopolitical situation has a challenging impact on the economic development. “We are confident, however, that the momentum created by mega-events like the Jeddah Metro, Dubai Expo 2020, and the World Cup in Qatar 2022 will contribute to positive business development and a continued demand for our products and services. The Saudi Vision 2030 will also promote continued positive developments,” he said.
Excerpts of the presentation:
• Saudi Arabia with a population of over 30 million inhabitants and nominal GDP of $752 billion is the largest economy in Middle East. Saudi Arabia will continue to be the most important consumption market in Middle East
• The Middle East continues to be a key market for Bosch, although the current geopolitical situation and low oil price have a challenging impact on the economic development. We are confident, however, that the momentum created by mega-events like the Jeddah Metro, Dubai Expo 2020, and the World Cup in Qatar 2022 will contribute to positive business development and a continued demand for our products and services. The Saudi Vision 2030 will also promote continued positive developments
• Bosch has its presence in KSA for the last 50 years, in association with Juffali Group since 1965
Three megatrends are ringing in this new era. They will shape and change mobility permanently:
• Increases in efficiency of combustion engines and electric powertrains
• Highly automated driving, respectively autonomous driving
• And — closely linked to the other two – connected driving.
• He discussed the advantages of “Connectivity” in the first part of his presentation, before showing, how the AA division is advancing and improving its core business around the world.
• Let me start with a simple question: How many times have you checked your smartphone today? 10, 20 or maybe even 30 times?
--> The Internet of Things and the increasing digitalization have impacted and changed the way we live permanently. Today, we use our phones for a variety of things without even thinking about it. It has become normal!
• Mobility is headed in exactly the same direction: depending on the model, cars can already utilize the outside temperature, measure and keep the distance to the car in front of us, evaluate the stability of the vehicle according to its position on the road 50 times per second and much more. The gigantic amount of data that cars can generate and utilize already is impressive. And there is a lot more to come!
• The increasing connectivity and digitalization creates various opportunities for the Automotive Aftermarket
Connected workshop:
• Starting first with workshops: Certainly, the drive to the workshop will still be necessary in the future — either for maintenance or repair
--> It is Bosch’s focus to turn this into a transparent and enjoyable experience.
• Connecting the equipment and workshop processes we are enabling users to monitor the repair process of their vehicles choosing optional activities, and upgrading their service level.
• Bosch’s Workshop connected experience in the workshop enables plug and play solutions for vehicle manufacturers, repair workshops and vehicle owners.
• This software suite and integrated backend maximised efficiency and transparency in the complete repair process.
• We are planning these services to our workshop network (BCS, BDS)
Connected product life cycle:
• Our focus is on proactive connectivity, to reduce Customer anxiety, and increase service readiness. Therefore our goal is to predict component failure remotely, and provide potential fixes when the vehicle is safely parked, avoiding unnecessary drives to the repair station.
• Predictive maintenance: servicing and remote diagnosis, flashing over the air — allows innovative diagnostic software to be developed and managed. It serves as the basis for further diagnostics innovations
• Complex algorithms make it possible to calculate the remaining service life of components in advance and to share this information with drivers. This makes it possible to perform maintenance services in ample time and avoid additional costs.
• In the event of a breakdown, the defect can be quickly diagnosed remotely, and the driver can receive an initial assessment of the condition of the vehicle.
• In certain cases, flashing over the air (FOTA) can even remedy the defect directly.
There is an extreme market pull in these solutions, Bosch is currently delivering pilots to major vehicle manufacturers and we see the market as ripe for disruption, and therefore expected growth is exponential.
Augmented reality for the vehicle owner, and supporting organizations (repair workshops, police, insurances…) — How does it all work?
--> additional info added to real image
--> graphics and video offers guidance for user instructions
--> support for users of all skill levels
--> numerous further applications possible, e.g. repair instructions, training, sales information
--> deployed for 5 major customers, expected to double in 2 years
• From the sales process to the moment the vehicle reaches the repair shop, Bosch is offering a new solution to make complex information easy.
• Bosch provides a platform for the commercialization of augmented reality: Digital and visual content can be integrated into technical documentation relatively easy and quick.
• With the help of a smartphone or tablet, it is possible to superimpose explanations, images, and videos on top of real-life images. This improves processes and workmanship, since the cloud-based approach means the information is absolutely up to date.
• It can be used as a user training tool: the support by augmented reality can help to understand complex features in a vehicle and to perform complex repair works, usually only very experienced employees can make. For Bosch augmented reality has a high future potential and further possible uses e.g. in service will be explored.
• Augmented reality has a high relevance for the Middle East Aftermarket --> using this technology to help bridge the skill gap of technicians in the automotive aftermarket --> this is a good example showing how we use technology in an emerging market environment.
• We already have few examples where technicians today use AR for installation/service instructions and for using our aircondition service equipment.
• We in Middle East are engaged with OEMs as well as in IAM using this technology.
Connected fleet management - How much I will need to budget for in terms of insurance?
==> telematics unit built into the car makes it possible to read vehicle data in real time
==> registered users get personalized detailed information on the condition of the vehicle, driving behavior, and multibrand fleet productivity are provided
==> deployed for 3 major fleet operators, strong growth expected
• With the focus of providing efficiencies and transparency, Bosch has developed a telematics unit built into the car makes it possible to read vehicle data in real time and transmit it to the fleet manager via a secure connection.
• Detailed information on the condition of the vehicle, driving behavior, and fleet productivity are provided
--> Insurances for example can use these driving behavior data to calculate their tarifs
--> Fleet manager can use the information when vehicle needs to be repaired in a workshop and thus a replacement is necessary
--> The additional costs quickly pay off since expansive downtimes can be committed
--> Fleet manager has the possibility to control where the vehicles is operated and thus prevent that always the same one is used for long distances. The system enables to distribute the mileage on the whole fleet, which cuts down leasing-rates.
• Connected fleet management is not only available for new fleets but also for existing ones: The respective retrofit communication module connects via the OBD-port. Since 2014 the technology is on the market and there are not only several projects secured, but also strong growth is expected.
• Also in Saudi Arabia, fleets are one of our target customer segments for our connected solutions.
• We would soon initiate discussions with private & govt. run fleets in order to introduce these solutions to the market
Bosch Automotive Steering
New competence within Bosch and Aftermarket Portfolio
==> new product portfolio enriches the Bosch system competence
==> supplier to major Saudi Arabian passenger car (PC) and commercial vehicle (CV) customers
==> product portfolio available in the Automotive Aftermarket
• Aside from the digital connectivity of vehicles we are continuously extending our product portfolio!
• As you are certainly aware, we increased our stakes in the Automotive Steering business a year ago and have completely integrated the division in our company in the meantime.
• With the automotive steering products we enrich our portfolio by an important competence of modern, fuel-saving electric steering systems
--> saves up to 0.8 liters of fuel per 100 kilometers
• A compact, locally-engineered, and especially cost-effective electric power steering system for Asian markets shows that the company not only offers solutions for the premium segment.
• For AA this means, that we can now provide spare parts to our customers in the Automotive Steering segment quickly and thoroughly – of course this holds true for Saudi Arabia as well, especially for CV segment dominated by European OEMs like Mercedes & MAN
• According to vehicle type, KSA is the biggest market for Automotive parts and services in Middle East
• Currently we are supplying complete units; product portfolio expansion planned during the course of 2017-18 to ensure supply of spare parts as well as service solutions.
Bosch Car Service (BCS) -
Further expansion
• Bosch Car Services is our full service concept for 4 wheelers
• It is one of the largest networks within IAM
• Globally 18,000 BCS
For KSA we have strong growth plans --> strong signal for KSA market!
==> 2015: 23 Bosch Car Service in Saudi Arabia
==> 2020: 46 Bosch Car Service in Saudi Arabia
==> Our USPs
==> Quality Service
==> Reasonable Price
==> OE specification products
==> standardized look & feel in service offerings across Kingdom of Saudi Arabia
Bosch in the Kingdom
of Saudi Arabia
--> Bosch AA is represented in KSA through Juffali group since 1965. Diesel Electric Co. was the 1st Bosch Sales & Workshop office in Jeddah in year 1966, since then there has been a lot of developments in infrastructure & organization.
--> Business partnership in AA & Power tools has grown successfully since last 50 years
--> KSA will remain strategically most important market in Middle East
--> Bosch AA & Juffali will continue investment in KSA to gain market shares
--> Juffali plans to have 23 branches to serve 2020 parts outlets by 2020
--> Bosch will set up a representative office in Q4.16 in order to support local partners. — SG
