AAPICO’s Vision

“Our vision is to become a lean green and
happy world-class organization with 4 fundamental
values of Happy Customers, Happy Employees,
Happy Shareholders, and Happy Public.”

It is my pleasure to report that 2018 has marked yet another trailblazing year for the AAPICO Group, with continued growth on all frontiers, including the expansion of our global footprint into Vietnam. Our latest joint venture with VinFast, a subsidiary of the leading Vietnamese conglomerate VinGroup, sees AAPICO as the majority partner in a Body In White production operation in Hai Phong. This plant will be a crucial part of the supply chain for VinFast’s ambitious project to launch the first Vietnamese car brand. This project heralds an exciting new era of intra-ASEAN co-operation for the AAPICO Group and helps to cement our position as a leading industry player in the region.

Elsewhere around the world, 2018 also saw AAPICO increasing its stake in the Sakthi Automotive Group based on that group’s market leadership positions in India, China and the USA in their industry segments. AAPICO invested a further USD 25 million to up our equity stake from 25.1% to 49.99%, in line with the synergy and the long term investment to take AAPICO globally. In Sakthi USA, there was a significant one-time loss due to air freight and stock loss, which is non-recurring. Except for Sakthi USA, operations in India, Portugal, and China operated normally with their own cash flow.

In terms of financial growth, 2018 was overall another positive year for AAPICO’s core businesses. The Group sales growth was in line with expectations and continuous improvements in profitability, with all subsidiaries performing well, thanks in part to a rebound in domestic demand for new vehicles. This increased demand was boosted by repeat purchase activity by customers who had availed of the government’s first-time buyer scheme in 2012-2013, which required owners to keep their vehicle for a minimum of 5 years.

Total automotive production in Thailand increased by 9.0% in 2018, with an annual output of 2.17 million vehicles, marking the first time that volumes had exceeded the 2-million milestone since the days of the first-time buyer scheme. Domestic market demand increased by 19.5% while export volumes recorded 0.1% growth.

Meanwhile in Malaysia, where the macroeconomic outlook is challenging, our car operations in Malaysia has a small dip of 4.7% with sales of 4,254 units in 2018 as compared to 4,529 units sold in 2017.

In China, however, we were able to maintain good growth, despite total production in the world’s largest car market declining by 4.2% to 27.8 million units, the first such drop in 20 years.

Looking to the year ahead, there may be clouds gathering on the global trade horizon. However, we are confident that the AAPICO Group is well positioned to weather any storms that may be brewing, thanks to our strong financials and the profitability of our core operations and associates. Our Debt to Equity ratio of 0.80 times is in line with targets and our debt serviceability remains within covenant requirements.

The profit from 2016, 2017, and 2018 were THB 543 million, THB 1,158 million, and THB 1,299 million respectively. The profitability has increased steadily over the last 3 years and we expect 2019 to perform better.

Lastly, I would like to extend my sincerest gratitude to all our employees, our Board of Directors, partners, associates, customers and other stakeholders, whose dedication and co-operation have been crucial to our ongoing success. Thank you in advance for your continued support in 2019.


Mr. Yeap Swee Chuan
President and CEO