Suzuki to pull the plug on its manufacturing in Thailand in 2025
Suzuki Motor Corporation will cease production at its factory in Thailand by the end of 2025 following a review of its global production structure, the Japanese automobile manufacturer said on Friday.
The global push for carbon neutrality and the increasing adoption of electric vehicles (EV) led to Suzuki reassessing its global production efficiency, the company said. Consequently, Suzuki has decided to cease operations at the Suzuki Motor (Thailand) Co Ltd (SMT) factory by the end of 2025, the company said.
Suzuki came up with a production plan in Thailand in 2007
After receiving approval to join the eco-car programme, the company began production in 2012 and was able to produce and export up to 60,000 vehicles per year.
Despite shutting down the production line, Suzuki said it would continue its sales and after-sales services in Thailand. The company plans to adjust its business strategy by importing vehicles from production lines in ASEAN countries, Japan, and India.
Suzuki added that in order to support the government’s policy on carbon neutrality, the company would introduce EVs and hybrid cars in Thailand in the future.
Currently, Suzuki imports vehicles from neighbouring Indonesia, including popular models such as the Ertiga and XL7, which are among the top-selling Suzuki models in Thailand. These imports benefit from special tax exemptions under the ASEAN Free Trade Area, which allows duty-free import if the vehicles contain at least 40% ASEAN content.
In India, which serves as a major market base for Suzuki, the company plans to produce its first EV in 2025. It remains to be seen whether this EV will be imported for sale in Thailand.
Currently, there is no free trade agreement between India and Thailand specifically for the automotive market.
This means vehicles imported from India to Thailand do not benefit from the same tax exemptions as those from ASEAN countries.
Suzuki’s decision to cease automobile production in Thailand marks the second significant move of its kind, following Subaru's earlier announcement to end its vehicle production in Thailand from the end of 2024.
The Subaru factory in Thailand is a joint venture between the Tan Chong International Group, which holds a 74.9% stake, and Subaru International, which holds 25.1%.
