Published on 22/10/2014
Valeo subs in local replacement unit Valeo Automotive (Thailand), the local unit of the French auto parts maker, has introduced a replacement business based in Thailand aimed at capitalising on the region's growing automotive market. "Our new business unit aims to tap into the 30 million vehicles in Asean, 10 million of which are in Thailand," said general manager Rebecca Cullinan. The Paris-based parent firm chose Thailand for the new business unit to be run by Valeo Service Asean because Thailand is the automotive hub in the region. Valeo Service Asean was established in January, focusing mainly on replaced-parts distribution in Asean. Some 50% of the replacement parts will be supplied by Valeo Thailand's plants in Chon Buri and Rayong, with the balance imported from its 123 facilities in 29 countries. Valeo started in Thailand in 1997 and has invested over 4 billion baht in three plants producing air conditioner parts and compressor systems, boasting an annual production capacity of 22 million units. Valeo plants in Thailand are original equipment manufacturers for leading auto makers such as Mitsubishi, Suzuki and Nissan. Some 40% of its parts produced in Thailand cater to the domestic market, with the rest exported to Europe, South America and Asia. Mrs Cullinan said the replacement business should help the company's revenue in Thailand to double by 2018. Last year Valeo reported its sales rose by 9% to 12.11 billion euros, with net profit up 18% to 439 million euros. Over the first half of this year, sales rose 10% to 6.34 billion euros with net profit up 38% to 262 million. The global replacement business accounts for 16% of total revenue, while revenue from Asia and Asean accounts 26% and 5%, respectively.