BANGKOK, NNA - Japanese auto parts maker Aisin Seiki Co. has teamed up with four Thai agents to gear up for sales in the automotive aftermarket in Thailand.
Local sales unit Aisin Asia (Thailand) Co. said Tuesday it has signed sales and purchase contracts with spare parts distributors Chin Seng Huat Autoparts Co., S.C.L. Motor Part Co., Asia Compact Industry Co. and M.N. Inter Holding Co.
“Aisin’s automotive aftermarket business in Asia has continued to grow at more than 15 percent annually, driven by growth in Thailand,” Masahiro Siiya, president of the local unit, said at a signing ceremony in Bangkok on Tuesday. Automotive aftermarket refers to the market for spare parts, accessories and components for vehicles.
The auto parts maker, under the Toyota Motor Corp. group, produces engines, car bodies, driving and braking systems as well as electronic and hybrid systems.
The Thai unit’s car component sales for local automakers and other component makers on a contract basis have been growing consistently in line with the expansion of the Thai auto market, he said.
It is aiming to boost its sales in 2019 by 25 percent from a year earlier to 1 billion baht ($31.7 million) and seeking to achieve 2 billion baht in three years, he said.
The local unit has already joined hands with two other agents -- Manoyontchai Co. and Yuthakit Motor Import 2005 Co. In March, Manoyontchai acquired a 25.5 percent stake in Aisin’s Thai unit, according to the Japanese group headquartered in Aichi Prefecture, central Japan.
Aisin Asia (Thailand) is also hoping to increase sales in Cambodia, Laos, Myanmar and Vietnam as it expects used vehicles from China to flow into the region, Soichi Sato, a director of the local unit, said at the event.
The Chinese government said earlier this month that it will lift a ban on used car exports, targeting developing countries in the region as part of its Belt and Road infrastructure initiative.
Aisin intends to enhance sales of spare parts for Chinese cars that are expected to be sold in the four Southeast Asian countries, in which left-hand-drive cars are the norm like China, Sato said.
The Japanese group has 18 manufacturing units in Thailand, according to its website. (NNA/Kyodo)