Nissan denies Thai factory closure, says operations being streamlined

The Thailand Board of Investment (BOI) has dismissed reports that Nissan is closing one of its two factories in Thailand, saying the Japanese automaker is merely streamlining production.

Media recently reported that Nissan plans to close three plants worldwide this year, cutting production and jobs.

Nissan’s original Thai factory, opened in 1975, was among those rumoured for the chop.

Narit Therdsteerasukdi, BOI secretary-general said Nissan Thailand executives had explained the move as a “line integration” to streamline operations.  Some production will move from the older Plant 1 to the newer Plant 2, built in 2014, which is located on the same premises in Samut Prakan.

 Plant 1 will be repurposed for body assembly, parts stamping, and logistics.

Car assembly will be concentrated at Plant 2, with the changes beginning in the second quarter of 2025. The aim is to cut fixed costs and prepare for new models.

Nissan confirmed Thailand remains a key market in ASEAN.

Its Thai production base is Nissan’s only wholly-owned facility in the region. Thailand also hosts Nissan’s regional headquarters. The company reiterated its commitment to growth in ASEAN and Thailand.

Nissan plans further investment in new models for Thailand, due for launch between 2026 and 2027. The automaker will seek government support measures for electric vehicle production, including reduced excise tax of 6-9% for hybrid vehicles (HEVs) for seven years from 2026.

Narit Therdsteerasukdi

Narit noted that the HEV support measures require a minimum 3-billion-baht investment by 2027, the use of locally-made key components (batteries from 2026, other parts from 2028), the inclusion of at least four out of six advanced driver-assistance systems (ADAS), and CO2 emissions below 120g/km (with lower rates for even cleaner vehicles).

"The government and BOI are dedicated to supporting the automotive industry, especially Japanese companies that have invested in Thailand for over 50 years, to maintain their competitiveness and transition smoothly to electric vehicles," Narit said. "The EV Board and BOI have introduced numerous measures to support the production of various electric vehicles – BEV, PHEV, HEV, and MHEV – aiming to make Thailand a leading production and export hub for next-generation vehicles."