What incentives do automotive companies need to deploy the latest automation technology for the benefit of South African automotive production?
The most effective incentive for advanced automation is a competitive and predictable operating environment. Automation investments are
hydraulics, pneumatics and electrical fundamentals continue to be the basis on which more advanced technologies are built.
Bosch commitment in South Africa reflects this belief. Over the past decade, Bosch has provided valuable training and development opportunities to around 1,000 people through initiatives such as YES for Youth, Work Integrated Learning, apprenticeships and graduate development programmes.
capital intensive and normally require a long-term view. Financial incentives can help, but they are most effective when they are part of a broader framework that supports productivity, skills and industrial resilience.
Modern automated production depends on stable electricity, compressed air, connectivity, logistics and maintenance ecosystems. If these conditions are uncertain, the business case for high-end automation weakens. Policies that improve energy security, support on-site resilience and strengthen industrial logistics can therefore have a direct impact on technology adoption.
Bosch ' s view is that technology and skills development belong together. Our long-standing presence in South Africa, including local manufacturing, training programmes and industrial technology expertise, reflects the need to combine investment in equipment with investment in people.
Where should the local automotive industry invest to empower young South African technical trainees and bring the skills needed for the future?
Apprenticeships and work-integrated learning are particularly important because they connect classroom knowledge with real industrial practice. Young trainees gain these capabilities best when they can work alongside experienced technicians, engineers and toolmakers. This also helps transfer tacit knowledge, which is often difficult to capture in formal curricula.
Technical and vocational education should therefore be closely aligned with industry needs. Programmes should include mechatronics, diagnostics, robotics, industrial maintenance, quality systems, energy management and software-related competencies. Equally, traditional skills remain essential. Mechanical understanding, toolmaking,
Where does Bosch see the future balance between traditional mechanical engineering and software architectures when developing components for automotive OEMs?
The future will not be a choice between mechanical engineering and software. It will be defined by the integration of both. Mechanical engineering remains essential because vehicles still depend on safe, reliable and durable physical systems. Braking, steering, thermal management, motion control and many other functions must perform under demanding conditions throughout the vehicle lifecycle. This engineering foundation cannot be replaced.
At the same time, software is becoming increasingly important in determining how these systems behave, interact and create value. Components are no longer judged only by their physical performance, but also by how well they integrate into electronic and digital vehicle platforms.
This means that the strongest automotive suppliers will be those that can combine deep hardware competence with software and systems expertise. A component must be mechanically robust, electronically reliable and digitally compatible. It must also fit into broader architectures that allow updates, diagnostics and interaction with other vehicle systems.
The right balance is therefore not fifty-fifty in a simple sense. It depends on the function. Safety-critical systems will always require rigorous mechanical and systems engineering. Digital functions will require scalable software architectures. The competitive advantage lies in mastering the interface between them. Bosch ' s long-term approach is to bring these disciplines together so that automotive OEMs receive solutions that are robust, intelligent and ready for the next phase of mobility.
SEPTEMBER 2026 53 WORDS IN ACTION