Bosch secures long term electric motor deal with Mercedes-Benz

Tuesday 19 May 2026 - 13:03

By: Dakir Madiha

Bosch secures long term electric motor deal with Mercedes-Benz

German automotive supplier Bosch has secured a long term agreement to supply large volumes of electric motors to Mercedes-Benz for the company’s next generation electric vehicles, extending the partnership well into the 2030s. The deal strengthens ties between two of Germany’s biggest industrial groups as the automotive sector navigates slower than expected electric vehicle adoption and growing global competition.

Bosch said the agreement reflects confidence in its electrification technologies and manufacturing capabilities. Markus Heyn, head of Bosch Mobility, described the contract as a reaffirmation of the longstanding relationship between the two companies and a sign of Bosch’s ability to deliver advanced large scale projects. Financial terms of the agreement were not disclosed.

The contract comes as Mercedes-Benz expands development of its next generation EV platform, including the new CLA lineup built on an 800 volt architecture designed to improve charging speed and efficiency. The automaker had previously revised its electrification targets in early 2024, delaying its goal of reaching 50 percent electrified vehicle sales by 2030. Despite the adjustment, the new supply agreement indicates that Mercedes continues to invest heavily in its electric vehicle strategy.

For Bosch, the agreement adds to a growing list of partnerships in the electric mobility sector. The company has invested more than 6 billion dollars into electromobility and operates electric motor production facilities worldwide, including a manufacturing site in Charleston, South Carolina. Bosch also signed recent agreements with NIO and Tata AutoComp covering connected EV technologies and electric drivetrain production.

The deal arrives during a challenging period for the European automotive industry. Bosch has announced plans to cut around 13,000 jobs in its mobility division by 2030, citing weak vehicle demand in Europe and rising competition from Chinese manufacturers. The long term Mercedes contract provides the supplier with a stable source of revenue and reinforces its position in the global electric vehicle supply chain.