Panasonic Holdings Corp. is betting on automation and increased production in Vietnam as it struggles to maintain its leading position in Asia’s wiring device market against mounting pressure from Chinese competitors.
The Japanese electronics maker plans to boost monthly production at its Binh Duong province plant to 16 million units by 2030, up from the current 9 million units. This expansion comes as Chinese manufacturers, offering products about 20% cheaper, have already displaced Panasonic from its top position in the Philippines market.
The company’s strategic planning director Ryo Matsumoto acknowledged that Chinese competitors have gained ground faster than expected, particularly as construction slowdown in China pushes manufacturers to seek new markets. In Vietnam, where Panasonic holds nearly 50% market share, local retailers are increasingly promoting Chinese alternatives like those from Chint Group.
To defend its position, Panasonic is shifting product development operations from Japan to Vietnam, aiming to cut development time by 40%. The company is also expanding into Cambodia in fiscal 2025, followed by Laos, while increasing its Vietnamese plant’s automation rate to 90% from 42% by fiscal 2025.
The overseas electrical materials division targets sales of ¥270 billion ($1.7 billion) in fiscal 2024, with Vietnam, India, and Turkey expected to generate about 80% of the unit’s earnings before interest, taxes, depreciation, and amortization.
