Weak currency helps Bosch export from Brazil even to China

German group Bosch is counting on the exchange rate in Brazil to increase exports and somewhat soften the drop in demand in the Brazilian market this year.

In the wake of the real’s devaluation of 40% in 2015 alone, Bosch is managing to export some auto parts from Brazil even to China. The sales to the Chinese market still have a symbolic volume. But they illustrate how the current exchange rate improved the competitiveness and is boosting exports even to an unlikely client, famous for its own cheap production.

Through August, Bosch’s exports from Brazil — the company’s main factory is located in Campinas, São Paulo — grew 20%. Most of the transactions are within the group, from Brazil to Europe. Then come sales to the US, of products such as ignition coils.

It is also from Brazil that the group supplies Latin America with its commercial products. “This is the beneficial side of the exchange rate, giving some breathing room to companies that are prepared to export,” says Carlos Eduardo Abdalla, head of corporate communications at Bosch in Brazil.

Bosch expects exports to account for 27% of its revenues in Brazil in 2015, compared with 22% last year. Still, well short of the level before the 2008 global financial crisis, when it reached 50% of sales.

In 2014, Bosch in Latin America had R$4.9 billion in sales, of which R$4.2 billion in Brazil. It expects to maintain the same revenue in the country, because it will not be possible to grow in 2015. In addition to auto parts, Bosch supplies products for mobility, industrial technology, consumer goods, power and building technologies.

The German group opened Wednesday its new global research campus in Renningen, close to Stuttgart, where it will gather 1,700 “creative minds” focused on applied research, with interest in rapidly presenting innovative products to the market.

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