Thailand: Rising car manufacturing poised to boost EPG sales
Eastern Polymer Group Plc (EPG), Thailand’s leading plastic moulder, expects more car manufacturing to boost its sales of pickup accessories, now making up about half of its total revenue.
Sales of products such as bed liners, sidesteps and canopies for pickups are believed to grow as a result of more car purchases, according to the company.
“Revenue has tended to grow since July, mostly from sales of pickup accessories under Aeroklas brand,” said Pawat Vitoorapakorn, chief executive of EPG.
He said the company is currently speeding up producing car accessories to serve the market after car manufacturers received more orders.
The situation is different from that in the first quarter of fiscal 2022-23 (from April to June) when revenue from pickup accessories dropped because of the economic slowdown in Europe and the prolonged semiconductor shortage.
Global automakers’ change of pickup models also affected sales of their accessories, according to EPG.
But since July, accessory sales have resumed growth, following more car production, said the company.
Also, global car companies can adjust their production plans to the chip scarcity.
In August, domestic car production increased by up to 64.9% year-on-year to 171,731 units, according to the Federation of Thai Industries’ automotive club.
In the same month, car sales soared by 61.7% year-on-year to 68,208 units because there were no lockdown measures like those imposed last year, the club said.
EPG expects bright prospects in Australia due to better sales of car accessories.
The company also recognised revenue from Australia-based 4 Way Suspension Products Pty, a manufacturer of car suspension products, since the second quarter of fiscal 2022-23 (from July to September).
The company earlier acquired 4 Way Suspension Products under its business expansion plan.
EPG expects its total sales to reach a growth target of 12-15% in fiscal 2022-23.