Source:
https://scmp.com/article/1576075/astra-otoparts-drives-quality-vehicle-industry

Astra Otoparts drives quality into vehicle industry

Reports by Krystin Chu and Khay Inn Poh

Updated: 5:31pm, 20 Jun, 2018

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Hamdhani, president

With the world's fourth-largest population at 250 million, and only half the average global motorisation density rate at 77 vehicles per 1,000 inhabitants, Indonesia is a goldmine for vehicle manufacturers. To take advantage of this opportunity, original equipment manufacturers (OEMs) have nearly doubled their production capacities from 2010 to last year alone. This aggressive expansion would not have been possible without the support of local vehicle component manufacturers such as Astra Otoparts. The company is Indonesia's leading designer and manufacturer of components for four- and two-wheeler vehicles for the OEM and replacement markets.

"We provide our clients with utmost satisfaction in terms of quality, cost and delivery," says Hamdhani, president of Astra Otoparts. Hamdhani also personally handles the company's manufacturing excellence and business process management division.

Working mainly with Japanese OEMs for almost four decades is a testament to the distinct quality that goes into every product of the company. Collaborating with more than 40 business units, subsidiaries and joint-venture partners, Astra Otoparts has been able to develop and produce components for leading vehicle companies.

These include Toyota, Daihatsu, Isuzu, UD Trucks, Honda, Suzuki, Mitsubishi, Nissan, Hino, Mazda and Chevrolet for four-wheelers, and Honda, Yamaha, Suzuki, Kawasaki and TVS for two-wheelers. The company's collaborations include 50 per cent equity shares in GS Battery, Kayaba, Astra Nippon Gasket, Akebono Brake Astra and Astra Visteon, and a 40 per cent stake in Federal Nittan Industries for the manufacture of automotive engine valves. Astra Otoparts has also been a partner of bearing specialist SKF since 1986.

To strengthen its market leadership, the company continues to expand its business ventures with industry majors. Astra Otoparts and Pirelli, for example, started constructing their production plant in Subang, Indonesia, in July last year. The two companies have teamed up to establish Evoluzione Tyres.

Astra Otoparts also signed a joint-venture agreement with Japan-based MetalArt in September last year to forge parts such as crankshafts and connecting rods. From a production capacity of 60,000 units this year, the factory is seen to expand production levels to about 8.7 million units by 2017. A developer of integrated manufacturing systems from die design to machining since 1916, MetalArt will greatly enhance Astra Otoparts' technical know-how.

"OEMs choose us because we have our own research and development facilities," Hamdhani says. "They can fully rely on us in developing components for their new vehicle models."

The company also boasts a strong presence in the replacement market. Through 71 distribution networks and 12,000 spare parts stores, Astra Otoparts sells its products across Indonesia and to more than 30 countries in the Middle East, Asia, Oceania, Africa, Europe and the Americas. The company accomplishes this with the help of its branch office in Dubai.

Its dedication to quality, cost and delivery has earned Astra Otoparts numerous recognitions. It has won the 2014 Frost & Sullivan Indonesia Excellence Awards under the Automotive Component Manufacturer of the Year category. This is the seventh time the company has won the distinction since 2007. Astra Otoparts also made it to Indonesia's Most Admired Companies 2014 under the automotive component category. In Fortune Indonesia's Most Admired Companies 2013, the company ranked second in the multiindustry category and was one of the 20 most admired companies in Indonesia.

"We strive to remain the local partner of choice with our excellent engineering competence, strong consumer brands and large retail and distribution network," Hamdhani says. "Our vision is to become a world-class auto parts supplier."

To realise this goal, Astra Otoparts welcomes technology partners and investors to further broaden its product offerings. It is keen on collaborating with companies that share its vision and culture for good governance and corporate social responsibility.