In an arrangement for Chinese market.

Bosch has signed a strategic collaboration agreement with China’s largest online retailer, Alibaba Group. China is the largest market for Bosch outside Germany and its online business is growing due to increased demand for quality products and services and increasing purchasing power from Chinese consumers. Approximately 28% of Bosch’s global sales are generated in Asia Pacific – 60% of this in China.

Bosch board of management member responsible for Asia Pacific, Peter Tyroller said, “We see the partnership between Bosch and Alibaba as an important long-term driver of growth for our business in China.”

The Bosch Group recorded sales of 12.5 billion euros (A$18.76 billion) in China, an increase of 12% year on year and a rise of 19% in local currency.

“It has been a strong start to 2017 for our Chinese business. For the year as a whole, we believe that we will again see growth above the market average, even if it is somewhat more modest,” he added.

At Alibaba’s virtual market place, Bosch sells a number of product categories in a flagship store, from power tools and household appliances to retrofitting components for vehicles. In 2016, Bosch’s sales at tmall increased by 60% year on year.

Over the long term, the partners hope to collaborate in sectors beyond e-commerce such as the Internet of Things (IoT), cloud computing, and artificial intelligence.