, an auto parts manufacturer, expects auto parts sales in the Asian market to keep growing despite geopolitical conflicts in the Middle East.){kind=link}
AAPICO Hitech Plc (AH), an auto parts manufacturer, expects auto parts sales in the Asian market to keep growing despite geopolitical conflicts in the Middle East.
While the disputes require monitoring, the Asian market is growing compared with other regions, said Yeap Swee Chuan, president and chief executive of AH.
“The Russia-Ukraine war drove up global crude oil prices last year, but we have yet to see significant impact of the Israel-Palestinian war on the auto parts industry,” he said.
Mr Yeap expects the Thai auto parts industry to grow by 5%, driven by demand from the internal combustion engine segment. The growing electric vehicle (EV) market is also expected to fuel the growth of the auto parts industry in the future.
He expects to serve new customers in the EV segment next year.
AH is an original equipment manufacturer supplying auto parts to car assemblers.
The company joined hands with Germany-based Eberspaecher, which specialises in clean mobility technology, to build an auto parts factory in the eastern province of Rayong.
The factory, which recently opened, produces exhaust systems, based on the clean mobility concept, for passenger cars. The systems can be used for pickups made by US automakers.
To serve the growing exhaust pipe market in Thailand, the plant is designed to have a production capacity of 300,000 units a year.
AH plans to sell the products, which meet many international emission standards like Euro 6, both in the domestic and international markets.
Thailand was the 10th largest car producing country, with total production reaching 1.88 million units in 2022.
The Federation of Thai Industries projects car manufacturing to increase to 1.9 million units this year.