Business & Financial News email: business(@)

Back to the Gulf state: Bosch restarts business in Iran – New office in Tehran

Tehran, Iran/Istanbul, Turkey – The Bosch Group is opening a new regional presence in Tehran, the capital of Iran. By doing so, Bosch intends to tap into one of the most promising growth markets in the Middle East in the years ahead. All business sectors of the supplier of technology and services will operate in Iran. By the end of the year, Bosch will employ around 50 associates there. Through its regional presence, the company is breathing new life into a long-standing connection to Iran. Bosch began selling its products in the country in 1924. “We are delighted to be back in Iran. In our quest to pick up speed quickly, we are benefiting first and foremost from reestablishing contact with former local partners and customers,” says Uwe Raschke, the Bosch board of management member responsible for Europe, Middle East and Africa. “The country’s potential is tremendous. We expect to see the Iranian economy grow by just under five percent this year. The medium term is also highly promising.”

More than half of the nearly 80 million inhabitants are under 25 years old and the population is also highly educated. Just over 20 percent of the country’s population lives in the Tehran area, a dynamic economic region with a rapidly developing IT infrastructure. In the years ahead, the Iranian government plans to invest more than 40 billion U.S. dollars in local infrastructure, such as in expanding airports, rail networks, and energy supply. “We can support the country’s modernization process with a wide range of products and solutions, including mechanical engineering applications, solutions for connecting infrastructure and energy and building technology, as well as innovative household appliances and power tools,” Raschke said.

Mobility solutions for growing automotive market
Bosch will also be present in Iran with its wide range of products and solutions from the Mobility Solutions business sector. Bosch sees great potential in Iran’s growing vehicle market: this year, more than one million vehicles are expected to be produced locally, some nine percent more than last year. The country’s outdated fleet also means that the need for investment is high, especially in the commercial-vehicle segment. Many trucks have already been on Iran’s roads for 40 years or more.

Strong growth in the Middle East
In addition to its liaison office in Iran, Bosch has also recently opened a sales office inLahore, Pakistan’s second-largest city. The activities in Iran and Pakistan as well as in 14 further countries in the Middle East will be coordinated by the regional subsidiary in Turkey. In 2015, the company generated sales of 1.9 billion euros in the region, including Turkey, corresponding to a considerable increase compared to 2014. The company generated sales of nearly 1.5 billion euros in Turkey itself last year and employs 16,600 associates. “Turkey plays a prominent role in our growth strategy in the Middle East,” Raschke said. Within a period of two years (2015 and 2016), the company is investing around half a billion euros, above all in expanding local manufacturing and engineering. Bosch also opened a new regional headquarters in Istanbul in 2015.