The Japanese corporation will stop producing cars in Thailand and focus on electric vehicles in other countries.
Japan’s Suzuki Motor Corporation announced Friday that it will stop producing cars and trucks in Thailand and close its Rayong car plant by the end of 2025. The decision comes amid sluggish sales in the country and the carmaker’s intention to focus on producing electric and hybrid vehicles at global production sites with more promising markets.
The Japanese carmaker plans to continue sales and after-sales services in Thailand by importing vehicles, including electric cars and hybrids, from the corporation’s plants in other Association of Southeast Asian Nations (ASEAN) countries, Japan and India.
'As part of promoting carbon neutrality and electrification worldwide, Suzuki has considered optimising global production sites within the group,' the company said in a statement, adding that the company has decided to close the plant by the end of 2025.Suzuki Motor Thailand’s local subsidiary, Suzuki Motor Thailand (SMT), was established in 2011 after the Thai government announced an eco-car project in 2007. The SMT plant began producing fuel-efficient compact cars in 2012, producing up to 60,000 units per year, including for export. The plant employed about 800 people.
The announcement comes as Japanese carmakers face stiff competition from Chinese manufacturers in Thailand and the need to produce more electric and hybrid cars.
'We are selling in Thailand, but sales volume has not increased as much as expected,' a Suzuki spokesman told the news agency.According to the company, the factory in Thailand produced just 7,500 vehicles in the fiscal year ending March this year.
In the future, Suzuki intends to focus production in Asia, Indonesia, Japan and India. Suzuki wants to create six electric vehicle models by 2030-2031. The company plans to launch its first electric car in India by next year, which Suzuki intends to export to Japan and Europe.
Other Japanese carmakers such as Toyota and Isuzu, which hold about 90 per cent of Thailand’s pickup truck market, also face competition from Chinese rivals with hybrid and electric models.
In a sign of how important Thailand is to the industry, BYD has signed an agreement to start vehicle production on the country’s east coast this year. Meanwhile, another Japanese carmaker is closing a plant in Thailand. Subaru will continue to sell cars in Thailand, but vehicles will be exported from Japan starting next year.
According to the Federation of Thai Industries, the number of factory closures in Thailand is expected to increase after 1,600 to 1,700 plants gradually closed earlier this year due to the economic downturn, merger plans or rising operating costs.
According to Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, the auto industry is struggling as domestic sales are sluggish and exports have slowed compared to neighbouring countries.
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