Thai auto stocks take a hit after Indonesia announces Isuzu move (updated)

Isuzu Motors

08/06/2023 11:23

(Updates with share prices recovering after denial from Isuzu)
       BANGKOK, June 8 (Reuters) - Shares of Thai auto parts
companies fell sharply on Thursday following reports that
Japanese automaker Isuzu Motors  7202.T  would relocate its
factory in Thailand to Indonesia, before recovering slightly
after the auto maker denied any such move.     
    Indonesian Industry Minister Agus Gumiwang Kartasasmita had
said on Wednesday that Isuzu could start production in Indonesia
as early as next year. 
    But Isuzu on Thursday denied any such plans.
    Prices of AAPICO HiTech  AH.BK , an automotive parts
manufacturer that makes the chassis frames for the Isuzu pick-up
model, closed 7% lower from the previous day, recovering from a
12% drop in the morning trading session. 
    Thailand's benchmark index was up 1.7%  .SETI .
    Auto lighting equipment maker, Thai Stanley Electric
 STANLY.BK , saw its share price down 1.8%, having dropped 4% in
earlier trading. 
    Thailand's overall auto sector index fell 1.36%, having
slumped 3.34% in earlier trade.
    Thailand is an auto production and export hub for Southeast
Asia and is home to some of the world's top producers like
Toyota  7203.T  and Honda  7267.T .    
    The government has been trying to maintain that status,
rolling out incentives to lure investment for electric vehicle
(EV) production. 
    Chinese EV maker Great Wall Motor is planning to set up a
$30 million battery pack assembly plant in Thailand while BYD
 002594.SZ  plans to set up a factory by 2024.
    The Southeast Asian country produces around 1.5 million to 2
million vehicles each year, exporting half of those. It has been
dubbed the Detroit of the East.
    It cemented its auto credentials with a strong supply chain
of auto parts over the last few decades. EVs, however, use far
fewer parts than conventional automobiles, forcing the industry
to adapt.     
    The government plans to have at least 30% of auto production
in the country be EVs by 2030. 

 (Reporting by Chayut Setboonsarng; Editing by Kanupriya Kapoor,
Martin Petty)
 ((chayut.setboonsarng@tr.com, @ChayutSet; +66854849033;))