A recession in new-car sales has been suffered by Japan's autoparts market
Japanese autoparts retailer Autobacs Seven has decided to enter into a capital partnership with Thai fuel distributor PTG Energy, with proposals to launch 50 fuel service stations offering both repairs and parts at PTG fuel service stations over a period of five years. A 40% stake in a Thai unit of Autobacs, will be taken up PTG, for 200 million yen ($1.82 million).
Each location will be manned with four of five people, guiding them in Autobacs' car repair know-how. Promotion of services will be done jointly by the companies, with PTG having several million loyalty card members.
Autobacs strategies include expansion of its seven independent locations in Thailand to 130 within five years. The hope is to turn a profit in 2020 through increased sales, since operations there now run at a loss.
Autobacs is on the lookout for new opportunities in the growing Thai market, given the dwindling population and declining interest in cars among younger generations in Japan. Source: Nikkei PWKD24082017