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Daily Newsletter

13 October 2023

Daily Newsletter

13 October 2023

JV opens second Asia exhaust plant

Will supply exhaust systems for "a pickup truck of a leading US automotive manufacturer"

Graeme Roberts October 12 2023

Two days after starting operations in Malaysia, joint venture partners Purem by Eberspaecher and AAPICO Hitech opened their new exhaust plant in Rayong, Thailand.

The production site, 100km southeast of Bangkok, will supply exhaust systems for "a pickup truck of a leading US automotive manufacturer".

The new plant covers 3,000 square metres and was built in only five months on AAPICO´s Rayong campus. About 150 employees will work there.

As the market in Thailand for exhaust systems is growing, the plant has a yearly capacity of 300,000 systems. The products will used on local sale and export vehicles and comply with emission laws like Euro 6 and CARB - LEV III or EPA - TIER 3.

Thailand ranked 10th in 2022 with total car production of 1.88m units. For 2023, the Federation of Thai Industries (FTI) forecasts that Thailand’s car production will reach 1.9m.

Martin Peters, managing partner of the Eberspaecher Group, said: “With the two new sites we opened – earlier this week in Malaysia and today Thailand – we are able to manufacture our products now in 19 countries.”

Two days ago, the JV opened their first new plant in Malaysia.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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