Suzuki Ceases CKD Production in Thailand As Sales Number Dwindle

Suzuki Motor recently announced it will be closing its auto plant in Thailand by the end of 2025. The firm cited the closure stems from sluggish sales in the region and a strategic shift towards more promising global production sites.

Established in 2011, Suzuki Motor Thailand (SMT) followed the Thai government's 2007 eco-car project initiative. The SMT plant began producing fuel-efficient compact cars in 2012, reaching an annual output of up to 60,000 units, including exports.

However in recent years, unit sales volume has dwindled down to a mere 7,500 vehicles in a fiscal year with no signs of this number picking up, says a Suzuki spokesperson.

Given this, Suzuki has restrategised and would concentrate its Asian production efforts in Indonesia, Japan, and India as Thailand shuts down. This move however would result in mass lay-offs of the plant's production workers.

Despite the shutdown, Suzuki will still continue to sell electric and hybrid cars in Thailand through SMT as the ongoing Japan-China rivalry in Thailand heats up. Suzuki to date still does not have a full EV in the market, a segment that the Chinese brands are making a killing in.

Besides the EV space, Chinese brands are also bringing in the heat in the flourishing pickup market in Thailand which is currently being dominated by Japanese automakers like Toyota and Isuzu. Chinese automaker BYD had recently signed a deal to begin vehicle production in Thailand.

Furthermore, Subaru Corporation and Tan Chong International Limited (TCIL) recently announced that local assembly or CKD operations for Subaru models in Malaysia, Thailand, Vietnam, and Cambodia will cease by the end of this year. Moving forward, all Subaru models in these markets will be CBUs imported from Japan. 

Source: Nikkei Asia