Bosch warns of rising costs in 2026, delays margin target
Bosch warned on Friday that rising costs and intense competition will weigh on its business in 2026, prompting the company to delay its target of achieving a 7% profit margin.
The world’s largest auto parts supplier said it now expects to reach the margin target in 2027 at the earliest, instead of 2026, citing persistent cost pressures and the impact of global tariffs on the automotive sector, News.Az reports, citing Reuters.
Bosch has already announced plans to cut around 13,000 jobs, roughly 3% of its workforce, as part of efforts to protect profitability and remain competitive amid falling prices and trade barriers.
Chief Executive Stefan Hartung previously warned that 2026 would be another difficult year for the industry, describing it as a sector where companies would be “fighting over every cent.”
Finance chief Markus Forschner said there are signs of a slowdown in global economic growth, adding that competitive and price pressures are likely to intensify, while higher tariffs are expected to have their full effect for the first time.
Bosch said sales rose 0.8% in 2025 to €91 billion, but its operating margin fell to 1.9% from 3.5% a year earlier.
By Aysel Mammadzada
Similar news
