According to Nikkei, on June 7, Suzuki Motor Corporation announced that it will shut down its auto manufacturing plant in Thailand by the end of 2025 due to sluggish sales in the country. Suzuki has decided to focus on more promising global production bases.
The report states that Suzuki Motor Thailand (SMT) was established in 2011 and began producing fuel-efficient compact cars in 2012, with an annual production capacity of 60,000 cars for both local sales and exports. A Suzuki spokesperson commented, "We have been selling products in Thailand, but the sales increase has not met expectations." According to the company, its Thai plant produced only 7,500 cars in the fiscal year ending March of this year.
The factory being closed is Suzuki's only plant in Thailand that manufactures four-wheel vehicles, and the workers at the plant will be laid off. However, Suzuki will continue to sell electric and hybrid vehicles in Thailand through SMT. In the future, Suzuki aims to focus its production in Asia on the markets of Indonesia, Japan, and India.
The closure of Suzuki's Thai plant comes at a time when automakers from China and Japan are both striving to gain more market share in Thailand. While Japanese automakers currently dominate the Thai market, Chinese automakers have gained some competitiveness in the electric vehicle market. Japanese automakers such as Toyota and Isuzu control about 90% of the Thai pickup truck market, but Chinese automakers are presenting considerable competition with their hybrid and electric models.
Additionally, media reports at the end of May indicated that Subaru plans to end its auto production in Thailand by December of this year. However, Subaru will continue to sell cars in Thailand, with future models being imported from Japan starting next year.
