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AISIN announces cooperation with 6 business partners Driving 2 billion baht sales in the next 3 years

Changes in business occur very rapidly today. Innovations and new technologies are used as the key development driver. Thailand is regarded as the center of auto parts industry in ASEAN. AISIN Asia (Thailand) Co., Ltd., under the umbrella of AISIN Group, the leader in producing world-class auto parts and auto spare parts withmore than 10,000 produced out of 30,000 total auto parts assembled in cars including engine, body, driving system, brake system as well as electronic and hybrid systems under the brand 'AISIN', introduces its business partners includingManoyontchai Co., Ltd., Yuthakit Motor Import 2005 Co., Ltd., Chin Seng Huat Autoparts Co., Ltd., S.C.L. Motor Part Co., Ltd., Asia Compact Industry Co., Ltd., and M.N. Inter Holding Co., Ltd. to improve potential in expanding its business.

In this occasion, the company organizes 'AISIN LEAD THE FUTURE' to officially introduce its partners to AISIN family to enhance its strength in business expansion. The company has set the target of 1 billion baht in 2019 and reaching 2 billion baht within the next 3 years. The event is held at The Ballroom, Park Hyatt Bangkok on Tuesday May 14th, 2019.

Mr.Masahiro Shiiya Associate Officer, Aftermarket Product Division of Aisin Seiki Co.,Ltd. and President of Aisin Asia (Thailand) Co.,Ltd., revealed that overall auto part and auto spare part marketing in Thailand has been growing consistently both for producers or OEM (Original Equipment Manufacturer) and REM (Replacement Equipment Manufacturer) following the demand of automobile as well as higher cumulative number of registered car in the country.

“Today, Thailand is the center of auto part and auto spare part industry of ASEAN with the consistent support from the Thai government resulting in numbers of large producers from overseas setting up production facilities in this country. AISIN Group, under the umbrella of Toyota is very interested in investing in production facilities to serve the demand of auto parts and auto spare parts to automobile manufactures as well as spare part market in the country as well as exporting. It is expected that the OEM market will grow following the growth in manufacturing of cars for domestic use which requires auto parts produced in the country. Meanwhile, REM market will grow together with number of accumulate registered cars in the country and ASEAN with cumulative number of cars which are over 5 years old are the main targets with high demand for auto spare parts in maintenance” Mr. Shiiya mentioned.

Mr.Soichi Sato Director-Aisin Asia (Thailand) Co., Ltd., revealed the vision of AISIN Group that is 'Quality First' which creates trust in 'AISIN' brand from customers around the world for more than 50 years in auto part and auto spare part business. In Thailand, the company sticks to the same vision resulting in, over the past 10 years, AISIN ASIA (Thailand) Co., Ltd. has earned trust from customers resulting in consistent sales growth. Sales in 2018 was 800 million baht (over 20% growth from the previous year) despite facing the slowdown of world economy and other negative factors such as exchange rate, political unrest, etc. which is regarded as very high growth (average 15% growth per year). The company has set the sales target of 1 billion baht in 2019 and reaching 2 billion baht within the next 3 years.

The key strategy to reach the aggressive target includes 4Ps which include Product, Price, Place, and Promotion as follow:

Product: Adding product line in 2 dimensions including 'Vertical' and 'Horizontal' with the addition of new products to the same lines to fulfill the needs of the market in key lines such as clutch, water pump, and hydraulic with new items including clutch disc, clutch cover for trucks, water pump for European cars as well as chemical products such as motorcycle engine oil. On the “Horizontal” side, new product lines will be added including Body Parts including door handle, door hinge, door lock, electronic product lines including speed sensor, window regulator, and performance part such as lubricant including PAO/Ester engine oil, injection cleaner, engine flush, mechanical parts including door stabilizer, motion control beam to align with new distribution channels from its new business partners.

Price: Competitive price is set for business partners and reasonable for customers, the price structure is divided into 3 grades including Premium, Sub-Premium and Commodity to provide alternatives for users and customers to enjoy quality products following the company’s vision.

Place: Distribution channel covers distributors, wholesalers, retailers as well as repair shops and specific group such as taxi. Moreover, there is also a plan to expand distribution channels into neighbor countries in GMS (Greater Mekong Subregion) such as Cambodia, Laos, Myanmar, and Vietnam. In the past year, the company has opened its subsidiary office in Vietnam and Myanmar.

Promotion: Promotion includes brand promotion with serious investment into “Above the Line” and “Below the Line”. There are sales campaign and promotion together with business partners consistently.

In order to follow 4Ps business strategies, Mr. Sato mentioned that AISIN ASIA (Thailand) Co., Ltd. needs to have strong business partners. Hence, it is introducing 6 key business partners including Manoyontchai Co., Ltd., Yuthakit Motor Import 2005 Co., Ltd., Chin Seng Huat Autoparts Co., Ltd., S.C.L. Motor Part Co., Ltd., Asia Compact Industry Co., Ltd., and M.N. Inter Holding Co., Ltd. to utilize the strength of each partner to increase its market share and reach new target customers to align with new product lines in the future. The strength of its 6 partners will enable AISIN to distribute its products across Thailand and supply products anytime customers want. Apart from product quality, management and distribution channel to serve the needs of customers are also the main focuses of AISIN ASIA (Thailand) as well.

Customers of 'Genuine' products are already aware of AISIN so there is a potential to introduce Aftermarket Grade Premium product with same quality. So, it is another alternative for customers. For repair shops, there is a big potential for body parts which, in the past, AISIN sold this group of products to OEM only but this year the products will be planned and distributed to REM through new partners also”.

Mr.Sato added that products which generate high sales for the company are 'Drivetrain' and 'Engine' including clutch and water pump. The sales of clutch for car number 1 is from Toyota vehicle while water pump sells approximately 100,000 pieces per year. Potential products are in chemical group such as engine oil and gear oil including auto transmission fluid and, most recently, the company has added brake fluid into the product portfolio as well as new product motorcycle engine oil which will be introduced shortly.

Follow the news and knowledge of choosing quality auto parts with car manufacturing standard at AISIN ASIA (Thailand) Co., Ltd. https://www.facebook.com/Aisinaftermarketthailand or Tel. 02-186-4904.

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