Foreign media report that the Juengroongruangkit family is considering selling Thai Summit Group, one of Thailand's largest automotive parts manufacturers, in a deal potentially valued at about 2 billion U.S. dollars or 60 billion baht.
Bloomberg reported that the Juengroongruangkit family, a wealthy Thai dynasty, is considering selling the Thai Summit Group for up to 60 billion baht due to pressures from the global shift toward electric vehicles and succession issues. The report noted that several global investment banks have recently proposed sale strategies, suggesting potential buyers such as CVC Capital Partners, Warburg Pincus, and Blackstone Inc. Previously, this idea had stalled due to differing opinions within the family.
Sources said the Juengroongruangkit family, which built Thai Summit into a cornerstone of Thailand's automotive industry over several decades, faces challenges in deciding on business succession following the death of founder Phatthana Juengroongruangkit in 2002.
Earlier in 2024, a Wall Street bank had valued Thai Summit's potential sale at as much as 2.8 billion U.S. dollars. However, negotiations failed to progress beyond the proposal stage due to conflicting interests among family members.
Meanwhile, intensifying competition in the electric vehicle (EV) market is pressuring the profit margins of traditional automotive parts manufacturers, which could lower current business valuations.
Thai Summit generates annual revenue exceeding 2.6 billion U.S. dollars and an EBITDA of more than 250 million dollars. It employs over 20,000 people in Thailand and operates factories in several countries, including China, Japan, and India.
According to the Federation of Thai Industries, Thailand's vehicle sales in 2025 are expected to reach their highest level in two years, driven mainly by electric vehicles, which will account for 45% of total deliveries.
Vehicle production in 2026 is projected at about 1.5 million units, similar to the previous year, amid a major industry transition toward electric-powered vehicles.
/source:VNexpress
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