Suzuki Motor Corporation To Shut Down Thailand Plant By 2025

Published: Monday, June 10, 2024, 17:00 [IST]

Suzuki Motor Corporation (SMC) has announced the closure of its plant in Pluak Daeng, Rayong Province, Thailand, by the end of 2025. The plant, which began operations in 2012, currently manufactures over six models. Suzuki's decision is part of its strategy to promote carbon neutrality and electrification globally.

Sales Figures and Production

In FY2023, Suzuki Thailand's sales were 12,709 units, with 10,807 units sold domestically and 1,272 units exported. The plant has been producing around 60,000 units annually, including exports. The models produced include the Swift, Celerio, and Ciaz, while imports include the XL7 hybrid, Ertiga Smart Hybrid, Jimny, and the Carry commercial vehicle.

Future Plans

Suzuki will continue to sell and provide aftersales support in Thailand by importing completely built units (CBUs) from ASEAN, Japan, and India. To support Thailand's carbon neutrality goals, Suzuki will introduce hybrid and electric models.

Subaru's Similar Move

Subaru Corporation's local manufacturer and distributor in Thailand also plans to cease production by December 2024. Subaru will import models from Japan instead of producing them locally.

EV Market in Thailand

EV sales in Thailand have reached 10 percent of total vehicle sales in 2023. Passenger vehicle sales have been declining in Thailand, from 6,72,460 units in CY2012 to 2,92,384 units in CY2023. Between January and April 2024, 82,903 units were sold, with April's 17,288 units being the lowest.

Thailand's EV Ambitions

Thailand is aiming to become a major hub for EV manufacturing, targeting USD 28 billion in foreign investment within four years. The International Energy Agency's Global EV Outlook for 2024 highlights that electric car sales in Thailand quadrupled year-on-year to nearly 90,000 units in 2023.

Chinese Influence

Chinese companies account for over half of EV sales in Thailand, with BYD planning to start operating EV production facilities in the country in 2024. This move could further increase the presence of Chinese companies in Thailand's EV market.

Hybrid and Electric Vehicles

Suzuki plans to import hybrids and EVs from India, Japan, and ASEAN markets to meet the growing demand. The shift towards electrification is in line with global trends and the Thai government's policies.

DriveSpark Thinks

This move by Suzuki aligns with global trends pushing for more sustainable transportation options. By importing electrified models, Suzuki can adapt to changing consumer demands and reduce its carbon footprint.

The Thai market's growth potential in EVs presents an opportunity for manufacturers to capitalize on a burgeoning sector and contribute to reducing emissions in the region.