Despite the tepid economy and sluggish automotive industry, German car parts maker and industrial services firm Robert Bosch GmbH (Bosch) still believes in Thailand's long-term prospects and remains committed to investment in the country.
Martin Knoss, Asean regional president for the gasoline systems division of Robert Bosch Automotive Technologies (Thailand), said that while the growth of Thailand's economy and auto industry has slowed, Bosch believes it is a short-term cyclical trend.
"Thailand's auto industry in particular has developed over many decades and Bosch is an original equipment manufacturer for carmakers here," he said. "Thailand is a strategic market in the Asia-Pacific region for Bosch and we will continue investment here."
According to Mr Knoss, Thailand also has a solid infrastructure base and abundant skilled labour to serve a strong automotive supplier base.
Bosch established its market presence in Thailand in 1923 through appointed distributors. In 1991, the company set up its first legal entity to directly operate its business in the country.
Today, Bosch runs four business divisions in the country: mobility solutions, consumer goods, industrial technology, and energy and building technology, with 1,100 employees as of April 2015.
The group manufactures automotive components at its facility in Amata City Industrial Estate in Rayong, and produces packaging machinery and hydraulic equipment at its plant in Amata Nakorn Industrial Estate in Chon Buri.
It also distributes automotive spare parts, power tools, security systems, thermotechnology, electronic components for the use of renewable energy, drive and control technology, and packaging technology.
Bosch recently began construction of a new factory and automotive research and development centre at Hemaraj Eastern Seaboard Industrial Estate in Rayong.
The plant is scheduled to be completed by the end of this year and will produce fuel injectors with an annual capacity of 1 million units.
The investment budget for the plant has not been disclosed.
In 2014, Bosch reported sales of 9.4 billion baht, down from 10 billion baht in 2013. The decline was due to lower car production and sales in 2014. Car production in 2014 dropped 23.5% from a year before to 1.88 million vehicles, while domestic car sales fell 33.7% to 881,832 vehicles.
The company is due to announce its 2015 sales in June.