Aisin Asia Thailand, the auto parts distributor of Japan's Aisin Group, has announced a three-year plan to achieve 2 billion baht in annual revenue by 2022, emphasising parts distribution in the replacement market in Thailand and neighbouring countries.
The company aims for 1 billion baht in fiscal 2019, which started in April.
Some 70% of annual revenue comes from Thailand, with the remainder from Cambodia, Laos, Myanmar, Vietnam and other countries.
Director Soichi Sato said the local subsidiary is keen on Thailand's car replacement market, as Thailand is the largest car producer in Southeast Asia.
The Thai market is expanding as vehicle registration keep increasing, Mr Sato said.
Aisin Asia Thailand distributes auto parts via the business-to-business platform, with 1,000 distribution channels nationwide.
In 2019, six local companies were authorised to add up to 3,000-4,000 channels by 2022.
"Those six companies are auto parts suppliers for car companies, and they run auto repairing services for the replacement market," Mr Sato said. "Aisin aims to supply products using their networks and services to reach local motorists. The company needs to provide new products to respond to local demand and compete with other companies in Thailand."
For neighbouring countries, Mr Sato said Aisin still has limited sales volume in those markets, but it plans to seek more local business partners to distribute auto parts and provide repair services.
He said the four nearby countries have immense potential for Aisin, especially the replacement markets.
"Many cars in those countries are imported from China, so the replacement market will become more competitive as new cars come onto the roads," Mr Sato said.
Founded in January 2013, Aisin Asia Thailand is one of 23 local subsidiaries under Aichi-based Aisin Group. Of these, 17 are local manufacturing sites for auto parts, supplied to car companies and made for the replacement market.
In fiscal 2018, Aisin secured sales revenue of 800 million baht, a 20% rise from the year before.
Mr Sato said Aisin Asia Thailand distributes engine parts, drivetrain parts, lubricants and brake systems. Some are imported from other Aisin Group manufacturing sites, and some are from local production facilities.
Toyota Group has a 30% stake in Aisin Group, producing 10,000 of the 30,000 parts required to make one car.
Aisin Group has 217 subsidiaries and affiliates worldwide, with 43 located across Asia and Oceania, including in Thailand.