Isuzu factory relocation rumours hit Thai auto parts shares

A significant decline in the shares of Thai auto parts companies was observed today, following rumours that Japanese automaker Isuzu Motors intended to move its Thai factory to Indonesia. The Indonesian Industry Minister, Agus Gumiwang Kartasasmita, stated yesterday that Isuzu could potentially commence production in Indonesia as early as next year. However, Isuzu denied any such relocation plans today.

In the morning trade on the Stock Exchange of Thailand (SET), shares of AAPICO HiTech, an automotive parts manufacturer responsible for creating chassis frames for the Isuzu pick-up model, dropped by 12%, despite a market index gain of 0.11%. Additionally, Thai Stanley Electric, an auto lighting equipment manufacturer, experienced a 4% decrease in share price. The overall auto sector index in the country fell by 3.34%.

Thailand serves as a major…