Shanghai (ZXZC)- Mahle GmbH (Mahle) and Robert Bosch GmbH (Bosch) have sold their turbocharger partnership Bosch Mahle Turbo Systems (BMTS), according to ZXZC exclusive source.

Founded in 2008, BMTS, a 50:50 joint venture (JV) between Bosch and Mahle, focuses on the R&D and manufacturing of gasoline and diesel turbo products. The JV currently has 5 factories worldwide with 1,400 employees.

BMTS is quite a latecomer in turbocharger area compared with some industrial giants like BorgWarner and Honeywell. However, it is still a competitive company by integrating the resources from its two parent companies. Mahle has strong advantages in material field and possesses over 50-year experience in supply of turbo components. As a global leader in engine control technologies, Bosch is preponderant in the integration of turbochargers and engines, which is deemed as technical difficulty in industry.

Earlier in 2017, Bosch and Mahle had planned to sell their partnership BMTS due to the failure to achieve scale economy while both parent companies had no intention of adding investments in the JV. Reportedly, the BMTS had not been put into operation until 2012 and its China's company started operation around three years later.     

Thanks to the huge investments and profound technology accumulations, the JV has seen a fast business expansion in the past few years. Reportedly, BMTS had annual turbocharger capacity in China of 100 thousand units in 2016 and jumped to 500 thousand units last year. In 2018, the company is expected to double the capacity to 1 million units from 2017. By 2021, around 52 million vehicles equipped with turbochargers will be delivered with a compound annual growth rate of 6.47% and the sales value of global turbocharger businesses may be elevated to nearly $12 billion, according to relevant data.