BANGKOK – Suzuki Motor (Thailand) Co. Ltd. issued a statement on June 7 to announce that it will close its automobile plant in Thailand, even though it had denied the news that was circulating online in May.
“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,” it stated.
Suzuki Motor (Thailand) also explained the details as follows:
“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 came to a decision to close 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 HEVs.”
Earlier on May 18, 2024, Suzuki issued an official statement to affirm that it would remain committed to conducting business in Thailand, and have a long-term plan to introduce new car models in 2025 and subsequent years, according to the business plan announced to Suzuki car dealers nationwide at the beginning of 2024.
“There has been news circulating on social media regarding the operations of Suzuki Motor (Thailand) Co., Ltd. The company would like to clarify that this news (ceasing operation in Thailand) is not true,” it had stated.
In addition, there is also a recognition that the reversal of the decision comes at a time when Suzuki Motor Corp. is being investigated by the Japanese government regarding vehicle certification tests, following similar investigations into Toyota and Mazda.
According to Kyodo News, Honda Motor Co., Suzuki Motor Corp. and motorbike maker Yamaha Motor Co., earlier this week admitted to cheating on vehicle tests to obtain mass production certification, sparking widespread doubts over their products’ reliability.
The ministry of Land, Infrastructure and Tourism visited Suzuki’s headquarters in Shizuoka Prefecture for an inspection on Thursday to determine if it should impose any administrative penalty on the company and whether recalls are needed.
Suzuki is the third company to have been inspected by the ministry after Toyota and Yamaha Motor.
Last week, TC Subaru (Thailand) Co., Ltd. announced that it will cease manufacturing Subaru vehicles at its factory in Thailand under the name Tan Chong Subaru Automotive (Thailand) Co., Ltd. or TCSAT, effective from December 30, 2024 onwards.
The decision was made due to the company facing challenges from the changing economic and business environment, which resulted in the produced vehicles not being able to be sold at appropriate prices, and the company’s inability to control the selling prices. Therefore, the company decided to stop production.
TC Subaru also announced that from 2025, Subaru vehicles sold in Thailand, Vietnam, Malaysia, and Cambodia will be imported from Japan instead of being locally produced. This decision aims to accelerate the introduction of new products, including premium models with the latest technologies, to strengthen the brand’s presence in the region.
The move comes as a response to the rapidly increasing competition from Chinese brands in these markets. TC Subaru and Subaru Corporation recognized the need for a more sustainable growth strategy and the ability to adapt quickly to changes in emerging markets.
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