Auto parts maker Aisin Seiki sets up aftermarket sales unit in China

13, Jun. 2019

TOKYO, June 12 Kyodo - Japanese auto parts maker Aisin Seiki Co. has opened an aftermarket sales unit in China to strengthen its operations outside Japan.

The Japanese group has partnered with its local agent to form Aisin Seiki (Shanghai) Trading Co. to more closely serve car repair service firms and car components retailers after nearly nine years of sales operation mainly via the agent, spokeswoman Haruka Yamakoshi told NNA on Wednesday.

The local unit, established in April with a capital of 14 million yuan ($2 million), is owned 60 percent by Aisin Seiki (China) Investment Co. and 40 percent by Zhuhai Xinzhimeng Investment Partnership Enterprise in the southern city of Zhuhai, Aisin said Monday in a statement.

It is also considering collaborating with Advics Sales Guangzhou Co., a Chinese unit of brake parts sales affiliate Advics Sales Co., to handle its products to enhance the entire group's aftermarket sales in the world's largest auto market, the company said.

Aisin Seiki, an auto parts manufacturer under the Toyota Motor Corp. group, is gearing up to expand global aftermarket sales, aiming to almost double its overall revenue in the field to 80 billion yen ($738 million) in four years, mainly in Asia and the Middle East, Yamakoshi said.

“The spread of car sharing services on a global scale is prompting more car parts replacement demand than before as the length of driving time per vehicle would be extended,” she added.

As part of its growth strategy in the automotive aftermarket segment, the company teamed up with four Thai agents in May to boost sales in Thailand, Southeast Asia's car manufacturing hub and the second-largest auto market in the region after Indonesia. A sales base in Dubai covers the Middle Eastern countries, she said.

“We're planning to build footholds in other countries to achieve the targets,” she said. (NNA/Kyodo)