The development of electric and hybrid vehicle technology will become a major commitment at Bosch, even though the company believes such alternative powertrains will continue to be only niche players for many years to come.

"Despite high oil prices, the internal combustion engine will remain the dominant technology over the next 20 years," Wolf-Henning Scheider, manager of Bosch's gasoline systems division, was quoted by Automotive News Europe.

Bosch is investing heavily with an eye toward becoming a leading supplier of electric-drive technology. Pureelectric drives are way ahead of other alternative technologies in terms of feasibility, Scheider said at a recent workshop at Bosch's Schwieberdingen development center. Still, he wouldn't "dare cite a date" when the technology will take hold in the market.

Together with Korean partner Samsung, Bosch is pouring $400 million into the development and production of lithium-ion batteries. But Scheider, who also is in charge of alternative powertrains at Bosch, feels that additional investments will be necessary in four to five years.

'We will have regular production of the first cells in 2010," he said. "The entire battery will follow in 2011."

Lithium-ion batteries, considered to be die most promising technology for storing energy in electric vehicles, are very expensive. In addition, they have a life span of only two or three years, which is why hybrids and electric vehicles will remain a niche application "until at least 2015," according to Scheider.

About 650,000 hybrid vehicles are expected to be built this year worldwide. Bosch expects a global production volume of 3 million hybrid vehicles and 350,000 electrics in 2015, including plug-in hybrids that could be charged at a power outlet.

All told, Bosch has deals with five automakers that involve the regular production of hybrid vehicles, and is negotiating with another five, one of which is a Korean manufacturer.

The first hybrid vehicles with Bosch components will be the next generation of the Volkswagen Touareg and Porsche Cayenne, both due out in early 2010.

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