Thai Summit eyes RI company<\/p>\n
Arijit Ghosh, Bloomberg, Bangkok<\/p>\n
Thai Summit Autoparts Industry Co., the nation's biggest supplier
\nof motorcycle parts, said it is in talks to acquire an Indonesian
\nautoparts maker as it seeks to expand in Asia's third-largest
\nmotorcycle market.<\/p>\n
\"Thailand's motorcycle market is saturating, while Indonesia
\nhas a growing market,\" Thanathorn Juangroongruangkit, executive
\nvice president of Thai Summit said in an interview in Bangkok on
\nApril 28, He did not name the Indonesian company.<\/p>\n
A venture in Indonesia will help Thai Summit tap rising demand
\nin Asia's biggest motorcycle market after China and India. Sales
\nhave increased an average 53 percent a year in the past five
\nyears. Faster economic growth and record low interest rates have
\nhelped companies such as PT Astra Internasional, the nation's
\nlargest auto distributor, sell more motorcycles and cars.<\/p>\n
\"Consumption for motorcycles in Indonesia is very strong,\"
\nsaid Erwan Teguh, head of research at PT Danareksa Sekuritas in
\nJakarta, who forecasts a 30 percent growth this year. With a
\nlower per capita income than Thailand, many Indonesians opt for
\nmotorcycles over cars, he said.<\/p>\n
Indonesia had a per capita gross national income of $810 in
\n2003 compared with $2,190 for Thailand, according to the World
\nBank.<\/p>\n
Thai units of companies such as Honda Motor Co., Thailand's
\nbiggest motorcycle maker, are boosting exports as domestic sales
\ngrowth slows. Thai motorcycle exports in the first quarter rose
\n32 percent to 266,359 units from 201,654 units in the same period
\na year earlier. Motorcycle production in the quarter rose 14
\npercent to 818,075 units, according to the Thai Automotive
\nIndustry Club, a trade group.<\/p>\n
An economic expansion in Indonesia is also boosting sales of
\nmotorcycles. The economy expanded 5.1 percent last year.
\nIndonesian Finance Minister Jusuf Anwar on May 4 said proposed
\ncorporate tax cuts will boost investment and job creation, and
\nhelp accelerate the nation's rate of economic growth to 7 percent
\nor more by 2009.<\/p>\n
PT Bank Internasional Indonesia, partly owned by Kookmin Bank,
\nSouth Korea's largest lender, is buying a stake in a motorcycle
\nfinancing company in the Southeast Asian nation to tap rising
\nsales.<\/p>\n
Thai Summit, which forecasts US$660 million of sales this
\nyear, has a venture in India with autoparts maker Jay Bharat
\nMaruti Ltd. near New Delhi and has factories in Malaysia.<\/p>\n
The company is also in talks with Ashok Leyland Ltd., India's
\nsecond-largest truckmaker, to make Ashok Leyland vehicles in
\nThailand.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/thai-summit-eyes-ri-company-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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