Bosch Automotive Electronics India, fully owned subsidiary of the Bosch Group, has obtained approval for the investment of INR5.5bn ($91.6m) over the next 3-5 years for manufacturing of electronic control units (ECU) of car engines.
The permission was awarded under the Modified Special Incentive Scheme (M-SIPS) and is expected to strengthen the company's manufacturing base in the country.
Bosch Automotive Electronics India managing director Markus Hildenbrand said the country is a fast developing market for Automotive Electronics.
"This support from government bolsters our confidence and strengthens the efforts to provide customized solutions for the Indian market," Hildenbrand added.
The company plans to improve its manufacturing and software capabilities with use of its expertise and experience to expand the domestic operations in India.
Bosch Group-India president Steffen Berns said electronics manufacturing is at a nascent stage in the country and the approval will allow the industry to meet the dynamic and modern requirements in the automotive domain.
"Increasing demand by Indian consumers for vehicles with technologically advanced Engine Management as well as Safety Systems are the main drivers of growth for the Automotive Electronics market," Berns added.
"We will continue to invest in this growing market and provide products of international standards, specifically tailored to the Indian requirements."
