Suzuki plans doubling of capacity at Thai plant

[bazmlb]

Annual output to reach 100,000 units in Southeast Asian push

To help drive its expansion in Southeast Asia, Suzuki Motor will double the annual production capacity at its Thai factory to 100,000 vehicles next year. While the Japanese automaker has a strong presence in the Indian market, it has lagged behind rivals in moving into Southeast Asia.

Suzuki opened the plant, its first in Thailand, in Rayong province in March 2012. It currently makes 50,000 Swift 1.2-litre compact cars a year, priced at Bt470,000 baht each. By investing an additional 5 billion yen (Bt1.6 billion), the company will add facilities to accommodate the production of a new compact vehicle.

With an engine displacement of 1 litre, the new vehicle will boast highly competitive features, superior fuel economy and low prices, according to the firm. It will draw on the weight reduction and other technologies used in the Alto mini-car, which is sold in Japan.

Prices have yet to be set but will likely be around 1 million yen, the same range as such leading competitors as the Nissan March and Mitsubishi Mirage.

Suzuki plans to curb prices by using an existing platform and taking advantage of high-volume parts procurement.

Auto sales in Thailand last year totalled roughly 1.5 million units, with Suzuki's share coming to only about 2 per cent.

As it works to step up operations in Southeast Asia, the company plans to spend some 93 billion yen to set up a plant in Indonesia. The facility will assemble compact minivans and other models that do not overlap with the Thai production line-up.

It aims to create a supply network of parts and finished products spanning Southeast Asia.

In the six major economies in Asean, combined car sales last year came to 3.48 million units, roughly the same volume as in India. The figure grew 33 per cent on the year, the sharpest among the world's key markets.

Suzuki plans to sell 2.7 million cars globally in the year through March, with Asia accounting for 1.63 million units, or 60 per cent of the total.

-- The Nation 2013-11-30

[liddelljohn]

This is very old news , Suzuki announced this capacity increase 3 months ago!!!!!!!!!!!

[Ulic]

Still can't believe how expensive cars are even when they are made here.

[lemoncake]

Still can't believe how expensive cars are even when they are made here.

its called tax