Brose is Looking to Expand Globally

Brose kick to open technology

Brose kick to open technology

The Tier 1 supplier, Brose, has plans to commit 315 million dollars towards expanding globally. Brose is responsible for the  production of technologies like window regulators, seat frames, door latches, and fans for cooling engines. In recent years, their development of the kick to open technology has played a large role in marketing strategies for companies like Ford. With the keys nearby, a swing of your leg will prompt the car to open the back gate. This makes it easier on the owner of the car to open the back door when their hands are full with luggage or a baby for example. The company is looking into implementing this same technology into the side doors for minivans.

Brose India

Brose India

Over the next decade Brose plans on becoming a more prominent supplier in Asia and Inida. India is an interesting player for Brose to work with considering that there market struggled in 2013 and is expected to remain at the same level throughout 2014. Although they have struggled in recent years, India’s market did see a 14% increase from 2002 to 2012. This increase trend is expected to continue in the next decade with about a 10-12% increase.

Of the 315 million committed to expanding globally, India is expected to see some of that come their way, however specific figures have not been released. Their goal in India is to obtain 15% of the market share for window regulators.

“European Auto Component Maker Brose Looks to Tap Asian Markets.” The Economic Times 7 May 2014.

6 comments to Brose is Looking to Expand Globally

  • Kick-to-open may be a bit high-market for India, but window regulators are certainly needed for things above base models. They’ll want to have a footprint there, even modest growth in GDP will add up to significant growth in autos. Still, who specifically will be Bose’s customers? Are there not suppliers already there for Suzuki-Maruti? Who are the other players – generic demand is a red herring??

  • Kuangdi Zhao

    I was staring at Brose’s global network for a while when we visited Brose. Brose has three headquarters: one in America, one in Germany, and one in China. I think the locations of these three headquarters are interesting because they tell us something about Brose’s strategy. Brose allocates its limited resources (human resource, monetary resource) in America, Europe, and China, so we can infer that these markets (Europe, North America, China) are the most important markets for Brose. Brose also sets out joint ventures with local firms. Brose has joint ventures in more than ten countries, among them are South Afriaca, India, Japan, and Korea. Setting out Joint ventures is an excellent expansion strategy because it requires less resource from Brose, while giving Brose the access to those markets.

  • mayolj16

    From what we have learnt in class, Asia is the fastest growing market for the auto industry. For Brose as a tier 1 supplier their expansion into these markets would depend on Asian firms growing or other firms expanding their operations in Asia. There is a lot of potential in Asia, and taking head start would be crucial for Brose to reach its goal of becoming a prominent supplier in this region.

  • Jier Qiu

    I read an article about Brose and the chinese automobile manufacturers signed strategic cooperation framework agreement in late Janurary. I think this is a good sign of how Brose is integrating itself into global markets. Not only in China, most nations in Asia has the potential for Brose to step in. For example, Brose and a local Thai company Delloyd Ventures Berhad formed Brose Delloyd Automotive.Thailand is one of the major car manufacturers in Asia and Brose found itself a place in the country.

  • Yes, global suppliers locate where assemblers are. For Brose, that doesn’t include countries that only have CKD production, but within Southeast Asia the leader by far is Thailand, with lots of other parts producers.

  • Louis Ike

    I am interested to see how the expansion by Brose into India and other emerging car markets plays out. I had not thought about the issue of suppliers for the overseas auto manufacturers in China and India, but thinking now it could be huge for some of these tier 1 suppliers to secure a business relationship with foreign manufacturers in these growing markets. The battle over supplying between foreign domestic companies and companies like Brose will be stiff I presume, and I wonder how international trade regulations will affect the entry of suppliers into these markets.

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