Malaysian-owned AAPICO Hitech, Sojitz Group form JV to penetrate Thai motorcycle market
09 Jan 2020
Thailand’s leading automotive parts manufacturer and Malaysian-owned AAPICO Hitech PCL and Japanese trading company Sojitz Group have agreed to establish a joint-venture (JV) to penetrate the motorcycle sector in Thailand with an initial investment of 400 million baht.
The newly established JV, Vroom Co Ltd, has been appointed the authorised importer and distributor of Bajaj, KTM and Husqvarna global motorcycle brands.
President and chief executive officer (CEO) of Stock Exchange of Thailand (SET)-listed AAPICO, Yeap Swee Chuan, said it was a privilege to have been entrusted by Bajaj and KTM Industries AG to further strengthen their world-class motorcycle brands in Thailand.
“AAPICO is extremely excited by the challenge of this new business venture, and we look forward to diversifying from the automotive industry into the motorcycle sector in 2020.
“I believe that with our long-standing partner, Sojitz Group, and our experienced and very capable team at Vroom, AAPICO can achieve another milestone in its history,” he said in a statement here today.
Bajaj is the world’s third-largest motorcycle manufacturer with a global presence in over 70 countries. The India-based company reported two wheeler sales of more than 4.2 million units, out of which 1.7 million units were exported, and generated revenues totalling US$4.6 billion in the 2019 fiscal year.
Meanwhile, Austria-based KTM Industries manufactures and distributes both KTM and Husqvarna motorcycle brands.
As the largest motorcycle manufacturer in Europe and among the leading off-road and sport motorcycle manufacturers in the world, KTM Industries sold a total of 261,454 motorcycles in 2018 — 212,899 KTM and 48,555 Husqvarna — worldwide, a growth of 10 percent compared with the previous year, and recorded a revenue of €1.56 billion, another good performance for eight consecutive years.
Meanwhile, President of Sojitz Autrans Corporation of Sojitz Group, Yoshiaki Ichimura, said the group was planning to introduce sporty models from the three brands into the Thai market.
“We are confident that the sporty models will receive a warm welcome, especially by big bike enthusiasts,” he said.
Vroom will be ably helmed by CEO Hideki Yanagisawa and chief operating officer Varot Kamolchotiros.
Yanagisawa said Vroom would seek qualified partners to join its dealership network to ensure maximum coverage around the country.
“Vroom is committed to becoming a customer-centric company and our top priority is to achieve complete customer satisfaction by offering motorcycle models that are on our customers’ ‘wish list’ and also provide them the best possible after-sales service. This will translate into immediate availability of spare parts and timely maintenance,” he said.
Vroom plans to launch selected Bajaj, KTM and Husqvarna motorcycles at
the Bangkok International Motor Show in March this year.