Subaru shuts Lat Krabang plant, shifts to imported vehicles
Japanese automaker's decision to leave Thailand was driven by rising demand for hybrid vehicles and fierce competition
Monday marked the final day of operations for Subaru’s vehicle manufacturing plant at Bangkok’s Lat Krabang industrial estate – a move the Federation of Thai Industries (FTI) saw as a strategic cost-cutting measure.
Earlier this year, TC Subaru (Thailand) announced that all Subaru vehicles would be imported following a joint decision by Tan Chong International (TCIL) and Subaru Corporation to cease car assembly operations in Thailand by yearend.
Subaru, which opened the factory spanning 100,000 square metres on April 23, 2019, is one of two major Japanese automakers halting production in Thailand. Suzuki Motor (Thailand) has also announced plans to end local vehicle production by the end of 2025.
Surapong Paisitpattanapong, president of FTI’s Auto Club, attributed these decisions to a strategic shift driven by changing consumer preferences. With a growing demand for hybrid vehicles over internal combustion engine (ICE) vehicles, manufacturers are reassessing their production bases.
He also noted increased competition from Chinese brands that are aggressively vying for market share in Thailand. He explained that Subaru’s decision to import completely-built vehicles was aimed at reducing costs, as the low production volume in Thailand no longer justified local manufacturing.
Looking ahead, Surapong said he expected Subaru to opt for importing vehicles with advanced technologies that cater to the technologically sophisticated Thai consumers.
