Suzuki to Halt Car Production in Thailand by End of Next Year

[webfact]

 

Suzuki Motor Corp has announced it will cease manufacturing cars and trucks in Thailand by the end of 2024. This move is part of a broader strategy to focus on the production of electric and hybrid vehicles in other regions.

 

Despite the factory closure, Suzuki plans to maintain its presence in Thailand by importing vehicles, including new electric and hybrid models, from other ASEAN member countries, Japan, and India.

 

The Rayong plant, which has been operational for 12 years, will be the one affected. With an annual production capacity of 60,000 vehicles, the plant employs around 800 people. The decision aligns with Suzuki’s global goals to advance carbon neutrality and the development of electrified vehicles.

 

Suzuki aims to introduce six electric vehicle models by the 2030-31 fiscal year, with the first expected to launch in India next year. By exiting the Thai car production market, Suzuki hopes to allocate more resources and focus towards these new initiatives.

 

Thailand’s automotive sector has lately been grappling with various challenges. Data from the Federation of Thai Industries (FTI) indicates an increase in factory closures this year. The reasons cited include economic downturns, mergers within the industry, and rising operational costs.

 

Thailand, often called the “Detroit of the East” for its robust automotive manufacturing sector, is facing restructuring pressures as global automotive trends shift towards electric and hybrid technology.

 

Suzuki’s exit from car production in Thailand is a noteworthy decision, mirroring the global automotive sector's pivot towards new technology and sustainable practices.

 

While it's an end of an era for Suzuki’s Thai manufacturing, it signals potential growth in the electric vehicle market, both for Suzuki and for Thailand, as the country adapts to new technological trends.

 

-- 2024-06-11

 

Get our Daily Newsletter - Click HERE to subscribe

[Aussie999]

not the first, won't be the last, to leave an unstable nation, run by criminals.

[JonnyF]

They probably don't want to compete with the flooding of the Thai market with cheap Chinese electric vehicles. 

 

Once the Chinese have removed the Japanese car manufacturers from Thailand, they'll have a monopoly which I'm sure they won't exploit. 😃

[Presnock]

10 minutes ago, JonnyF said:

They probably don't want to compete with the flooding of the Thai market with cheap Chinese electric vehicles. 

 

Once the Chinese have removed the Japanese car manufacturers from Thailand, they'll have a monopoly which I'm sure they won't exploit. 😃

same thing in the US - that is why the govt is taxing Chinese-made EV 100% which of course the Chinese are complaining loundly!  They think they can get around it by producing EV's in Mexico or Canada, and then selling them in the US.  

[Walker88]

As technology and customers preferences change, old plants become obsolete. Corporate Chieftains and location managers are then free to choose new countries for their next factory. Tax incentives, bureaucracy, political stability, education level of the workforce, general cost structure, etc. all factor into the decision. Thailand is losing out, and the authorities don't seem to know how to address it.

 

Somewhat surprisingly, even the pampered elite seem to be missing the plot. The departure of major businesses will impact the value of all assets in Thailand, which the one half of one percent own to the degree of 75%.

 

As Japanese and other nation's entities depart, Thailand also risks becoming a vassal state of China. Some elite of that ethnicity may like that, but the majority of Thais will not. That hasn't been good for neighboring Myanmar, as the Chicom-supported junta there is now facing a nationwide uprising bordering on civil war, and really only controls the major cities. Thailand should pay attention.

[johng]

Subaru are closing their Thai factory too.

Toyota sales down 34%  the other Japanese car makers also down to lesser percentages.

[Tropicalevo]

36 minutes ago, Walker88 said:

Thailand is losing out, and the authorities don't seem to know how to address it.

I am not sure that the authorities want to address it.

They seem happy to be a distant province under the CCP.

[Bandersnatch]

https://www.nationthailand.com/business/automobile/40038515#

 

 

[Georgealbert]

Press release from the company.

 

 

[Mr Meeseeks]

1 hour ago, johng said:

Subaru are closing their Thai factory too.

Toyota sales down 34%  the other Japanese car makers also down to lesser percentages.

 

Signs of an economy in big trouble. 

[John Drake]

Need to tax some more. 

[In the jungle]

Only two of Suzuki's current seven model range are made in Thailand.

 

Apart from the Jimny the rest are, I think, made in Indonesia.

[vinny41]

1 hour ago, Bandersnatch said:

https://www.nationthailand.com/business/automobile/40038515#

 

 

These are not all  sales numbers they are registration numbers and it includes Sales figures from December 2023 which become January 2024 registrations

The registrations numbers for BYD for February 2024, March 2024 and April 2024 total combined figure is 3,097 

[Peabody]

4 hours ago, Walker88 said:

As Japanese and other nation's entities depart

This will help Thailand to become "the Detroit of the East".

[Peterphuket]

4 hours ago, Walker88 said:

As technology and customers preferences change, old plants become obsolete. Corporate Chieftains and location managers are then free to choose new countries for their next factory. Tax incentives, bureaucracy, political stability, education level of the workforce, general cost structure, etc. all factor into the decision. Thailand is losing out, and the authorities don't seem to know how to address it.

 

Somewhat surprisingly, even the pampered elite seem to be missing the plot. The departure of major businesses will impact the value of all assets in Thailand, which the one half of one percent own to the degree of 75%.

 

As Japanese and other nation's entities depart, Thailand also risks becoming a vassal state of China. Some elite of that ethnicity may like that, but the majority of Thais will not. That hasn't been good for neighboring Myanmar, as the Chicom-supported junta there is now facing a nationwide uprising bordering on civil war, and really only controls the major cities. Thailand should pay attention.

"Thailand should pay attention. "

Surely there will have to be better governance first

[hotchilli]

5 hours ago, Aussie999 said:

not the first, won't be the last, to leave an unstable nation, run by criminals.

Start of the exodus.... 

[hotchilli]

2 hours ago, Mr Meeseeks said:

 

Signs of an economy in big trouble. 

Thailand will survive with tourism and cheap Chinese products.

[JonnyF]

3 hours ago, Tropicalevo said:

I am not sure that the authorities want to address it.

They seem happy to be a distant province under the CCP.

 

I am sure the Thai way of doing "deals" is more closely aligned to the Chinese than the Japanese. 

[john donson]

importing at 308% import tax ?  the end of suzuki then

[billd766]

5 hours ago, Aussie999 said:

not the first, won't be the last, to leave an unstable nation, run by criminals.

From the way that I read the thread, Suzuki will stop making ICE small cars and trucks.

 

 

From the OP

Despite the factory closure, Suzuki plans to maintain its presence in Thailand by importing vehicles, including new electric and hybrid models, from other ASEAN member countries, Japan, and India.

 

So it appears that the Suzuki company will not be leaving Thailand, but they will be concentrating on a different segment of the market in the future.

 

 

40 minutes ago, hotchilli said:

Start of the exodus.... 

So it appears that the Suzuki company will not be leaving Thailand, but they will be concentrating on a different segment of the market in the future.

[Srikcir]

5 hours ago, JonnyF said:

Once the Chinese have removed the Japanese car manufacturers from Thailand

Meanwhile Japan has begun to fill an EV gap in Japan caused by China's departure and to build EV's in Canada.

[Chris Renaix]

Suzuki Motor Corp has announced it will cease manufacturing cars and trucks in Thailand by the end of 2024.

 

Not correct, it is the end of 2025, according to Suzuki.  Title is correct though.

[Ralf001]

3 hours ago, In the jungle said:

Only two of Suzuki's current seven model range are made in Thailand.

 

Apart from the Jimny the rest are, I think, made in Indonesia.

 

Jimny made in Japan and India.

[OneZero]

7 hours ago, Walker88 said:

As technology and customers preferences change, old plants become obsolete. Corporate Chieftains and location managers are then free to choose new countries for their next factory. Tax incentives, bureaucracy, political stability, education level of the workforce, general cost structure, etc. all factor into the decision. Thailand is losing out, and the authorities don't seem to know how to address it.

 

Somewhat surprisingly, even the pampered elite seem to be missing the plot. The departure of major businesses will impact the value of all assets in Thailand, which the one half of one percent own to the degree of 75%.

 

As Japanese and other nation's entities depart, Thailand also risks becoming a vassal state of China. Some elite of that ethnicity may like that, but the majority of Thais will not. That hasn't been good for neighboring Myanmar, as the Chicom-supported junta there is now facing a nationwide uprising bordering on civil war, and really only controls the major cities. Thailand should pay attention.

Thai hierarchy digging a deeper & deeper hole for themselves by not understanding that the CCP does not have underlying good intentions.  That is one reason buying a CCP submarine is absolutely ridiculous.

 

But, back to the economy, following are a couple of interesting articles ref the US:

Trump Is Right: We Should Raise Tariffs on China - The American Conservative

US let China manufacture everything in order to get less expensive goods.  Inexpensive products the PRC subsidized, to quote Rubio ...."with handouts, tax breaks, financing incentives, stolen intellectual property, and even slave labor."

 

Embracing Communist China Was U.S.’ Greatest Strategic Failure | RealClearPolitics

 

[ujayujay]

8 hours ago, Aussie999 said:

not the first, won't be the last, to leave an unstable nation, run by criminals.

So there must be a reason why Suzuki does not have a factory in Australia, right?

[Andrew Dwyer]

“ Suzuki's plant, in Rayong province, makes the Swift, Ciaz and Celerio models. It employs around 800 people and produced just 7,579 vehicles in the last fiscal year (ending 31 March 2024), including 1,272 for export. The company sold 10,800 vehicles in Thailand in this period, including imports. “
 

https://www.just-auto.com/news/suzuki-to-cease-production-in-thailand/#:~:text=Suzuki's plant%2C in Rayong province,in this period%2C including imports.

[BangkokReady]

9 hours ago, webfact said:

Thailand, often called the “Detroit of the East” for its robust automotive manufacturing sector, is facing restructuring pressures as global automotive trends shift towards electric and hybrid technology.

 

Soon to go the way of the real Detroit, perhaps.

[Thingamabob]

8 hours ago, Aussie999 said:

not the first, won't be the last, to leave an unstable nation, run by criminals.

I tead that Subaru will also be leaving.

[hotchilli]

3 hours ago, billd766 said:

So it appears that the Suzuki company will not be leaving Thailand, but they will be concentrating on a different segment of the market in the future.

Exporting to Thailand but ceasing production in Thailand.

[GreasyFingers]

10 hours ago, Aussie999 said:

not the first, won't be the last, to leave an unstable nation, run by criminals.

Do you mean the same as Mitsubishi, Holden etc closing their Australian plants?