Honda to shift car manufacturing from Ayutthaya to Prachinburi plant
The move is, however, not seen as a downsizing.
Japanese automaker Honda has undertaken a restructuring of its manufacturing facilities in Thailand, ceasing car manufacturing operations at its Ayutthaya plant and shifting them to a facility in Prachinburi province.
The Ayutthaya plant will be repurposed to make automotive parts instead, the auto giant said.
Meanwhile, NHK World Japan reported a 50% reduction in Honda's production capacity in Thailand, down from approximately 270,000 units per year to 140,000 units per year. This adjustment is attributed to market conditions and intense competition from electric vehicles (EVs), prompting Honda's management to anticipate lower sales volumes in Thailand going forward.
The move is, however, not seen as a downsizing.
The secretary-general of the Board of Investment (BOI), Narit Therdsteerasukdi, revealed that Honda had reaffirmed its plan to invest more than 50 billion baht in Thailand over the next five years, as previously assured to the Thai government during Prime Minister Srettha Thavisin's visit to Japan last December.
In addition, there are clear plans to accelerate the partial production shift from internal combustion engine vehicles to electric vehicles (EVs) in Thailand in the near future, he said
Narit said that the government places great importance on all types of vehicle-makers. Recently, the BOI has implemented measures to assist both car manufacturers and parts suppliers, aiming to enhance competitiveness and facilitate the transition through technological advancements. This support aims to benefit manufacturers of both internal combustion engines and hybrids, improving production efficiency to transition into modern vehicles.
There are plans to promote groups of automotive parts manufacturers looking to invest in upgrading or expanding into new industries such as electric vehicle components, aerospace parts, medical devices, machinery, and automation systems. These initiatives include upgrading machinery, adopting digital technologies for production efficiency, obtaining certifications for new industries, and training personnel in technology.
Additionally, the BOI and Excise Department are in the process of formulating additional measures to support the automotive industry, expected to be announced within the next month.
