Suzuki Motor Corporation has published a statement indicating its intention to close the manufacturing plant as part of its global production structure.
“Suzuki Motor Corporation has decided to close the plant of its automobile subsidiary in Thailand, Suzuki Motor (Thailand) Co., Ltd. (hereinafter “SMT”) by the end of 2025. This decision was made as a part of reviewing Suzuki’s global production structure.
Following the announcement of the eco-car project by the Thai government in 2007, Suzuki applied for the project and established SMT in 2011, after receiving approval of the project. The automobile plant started its production in 2012, and produced as much as 60,000 units annually including exports. Meanwhile, in the course of promoting carbon neutrality and electrification globally, Suzuki had been considering optimizing global production sites within the group. Consequently, we decided to close the SMT plant by the end of 2025.
Even after the closing of its plant, SMT will continue its sales and after-sales services to meet the customer needs in Thailand, through importing CBUs from plants within the ASEAN region as well as Japan and India. Also, in order to contribute to achieving carbon neutrality goals promoted by the Thai government, the company will introduce electrified models including hybrid vehicles.”
Phillip Securities highlighted in a statement that the recent shutdown announcement of Suzuki Motor (Thailand) is anticipated to inject negative sentiment into the commerce sector, leading to concerns about rising unemployment, particularly following Subaru’s recent departure. The repercussions are expected to extend to stocks associated with autoparts and industrial development.
The brokerage firm pointed out that despite the Free Trade Agreement (FTA) between ASEAN and Indonesia, the surge in transportation costs is poised to drive up Suzuki’s selling prices, potentially undermining its competitive edge. This development could prompt a shift for companies to move from in-house manufacturing to importing models, particularly in the B-segment, in the future, carrying significant implications for the automotive industry in Thailand.
