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Monday, June 17, 2024

Suzuki to Cease Car Production in Thailand

Suzuki Motor Corp has made a significant announcement, stating its intention to halt car and truck production in Thailand by the close of 2024. This strategic move is part of a larger plan aimed at prioritizing the manufacturing of electric and hybrid vehicles in alternative regions.

Despite the forthcoming closure of its factory, Suzuki intends to uphold its presence in Thailand by importing vehicles, including the latest electric and hybrid models, from other ASEAN member countries, Japan, and India.

The affected facility, the Rayong plant, which has operated for a dozen years and possesses an annual capacity of 60,000 vehicles, currently employs approximately 800 individuals. This decision is in harmony with Suzuki’s global objectives of advancing carbon neutrality and the progression of electrified vehicles.

Suzuki’s roadmap includes the introduction of six electric vehicle models by the fiscal year 2030-31, with the initial launch slated for India next year. By withdrawing from the Thai car production market, Suzuki aims to redirect resources and attention towards these new ventures.

Thailand’s automotive sector has encountered several challenges recently, as indicated by data from the Federation of Thai Industries (FTI), citing a rise in factory closures this year. Factors contributing to these closures include economic downturns, industry mergers, and escalating operational expenses.

Thailand, renowned as the “Detroit of the East” due to its robust automotive manufacturing sector, faces restructuring pressures amidst the global shift towards electric and hybrid technology.

Suzuki’s decision to exit car production in Thailand underscores the automotive industry’s global transition towards new technologies and sustainable practices.

While the conclusion of Suzuki’s Thai manufacturing era is noteworthy, it also signifies potential growth in the electric vehicle market, offering opportunities for both Suzuki and Thailand as the nation adapts to evolving technological landscapes.

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