FORVIA and BYD Joint Venture to Build Cutting-Edge Seat-Assembly Plant in Thailand, Targeting Asia-Pacific Growth
FORVIA and BYD, in partnership with Faurecia, have unveiled plans to construct an advanced seat-assembly plant in Thailand’s Rayong province, bolstering their global technical partnership and positioning themselves for further growth in the Asia-Pacific market. The new facility, operating under Shenzhen Faurecia Automotive Parts Co., Ltd, a joint venture majority-owned by FORVIA, signifies a strategic leap for both companies in the electric vehicle sector.
Already reaping benefits from their collaboration, the two companies have successfully established seven state-of-the-art factories in China, with an impressive four of them launched within the past 18 months. FORVIA’s entry into Thailand’s market for Seating activities marks a momentous milestone, complementing the Group’s existing industrial presence in the country encompassing its Interior, Electronics, and Clean Mobility businesses.
The venture’s potential impact on both companies and their stock prices in the mid-term future cannot be overlooked. The Asia-Pacific region is projected to account for 57% of global automotive industry growth over the next fifteen years, making the new plant a strategic move to tap into this burgeoning market. Moreover, FORVIA’s 2022 sales of over 6.7 billion euros in Asia already contribute significantly to the company’s total revenue, comprising 27% of its overall sales. The optimistic outlook for this region further boosts the potential benefits of their joint venture as Asia (excluding India) is anticipated to represent 50% of global vehicle production by 2025.
Presently, FORVIA’s stock is trading at $24.35 on the OTC market, while BYD is trading at $68.02 on the same exchange. Although it is challenging to precisely predict the exact impact of this new deal on their stock prices in the mid-term future, the companies’ expansion into the thriving Asia-Pacific market could potentially have a positive influence on their stock performance.
The joint venture’s construction of the new seat-assembly plant in Thailand signifies a strong commitment to enhancing their market presence and technical capabilities in the electric vehicle sector. With the Asia-Pacific region poised for substantial growth in the automotive industry, FORVIA and BYD are positioning themselves for success in this dynamic and promising market.
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