Chinese automaker BYD and global automotive supplier Forvia have joined forces to open a new seat assembly plant in Rayong, Thailand. This strategic move marks a significant expansion of their partnership and strengthens both companies’ presence in the rapidly growing Asian automotive market.
Plant Details and Production Plans
The new facility, inaugurated on July 18, 2023, is set to begin mass production just one month after its opening. It will focus on manufacturing complete seats for BYD’s electric and hybrid vehicle fleet, including popular models such as the BYD ATTO 3 and Song Plus. With a full production capacity of 180,000 car seating sets per year, the plant is poised to meet the increasing demand for electric vehicles in the region.
Strategic Importance
This joint venture aligns perfectly with Forvia’s “West to East” strategy, capitalizing on the robust growth in Asian markets. Christophe Schmitt, Executive Vice President of Seating at Forvia, emphasized the significance of this development, stating, “The launch of production in this new seat assembly plant is a major milestone in the Group’s plan to benefit from growth in Asia”.
The choice of Thailand as the location for this new plant is strategic. It is expected to serve as Forvia’s export hub for the Asia-Pacific region, further solidifying the company’s presence in Southeast Asia.
Expanding Partnership
The collaboration between Forvia and BYD dates back to 2017, founded on a shared vision for decarbonizing the automotive sector in Europe and China. This latest venture in Thailand builds upon their existing partnership, which has already resulted in the establishment of seven factories in China with a combined annual production capacity of 2.6 million seats.
Market Outlook
The outlook for the Asian automotive market is highly promising. Estimates suggest that by 2025, Asia (including India) will account for 60% of global vehicle production. This new plant positions both BYD and Forvia to capitalize on this growth, particularly in the electric and hybrid vehicle segments.
Forvia’s Asian Presence
Forvia, formerly known as Faurecia, has a substantial presence in Asia, employing over 40,000 people across the region. In 2023, the company reported sales of 7.4 billion euros in Asia, underscoring the importance of this market to its global operations.
As the automotive industry continues to shift towards electrification, this new seat assembly plant in Thailand represents a strategic move by BYD and Forvia to strengthen their position in the Asian market and contribute to the growing demand for electric vehicle components. The partnership between these two industry leaders is likely to play a crucial role in shaping the future of sustainable mobility in the region.
