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Suzuki to Discontinue Car and Truck Production in Thailand By 2025

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Suzuki Motor Corp

Suzuki Motor Corp will discontinue car and truck production in Thailand by the end of next year to focus resources on creating electric and hybrid vehicles elsewhere, the company announced Friday.

The Japanese manufacturer intends to continue providing sales and after-sales services in Thailand by importing vehicles, including EVs and hybrids, from plants in the Association of Southeast Asian Nations (Asean), Japan, and India.

“In the course of promoting carbon neutrality and electrification globally, Suzuki had been considering optimising global production sites within the group,” the firm said in a statement, adding that it had chosen to close the factory by the end of 2025.

Suzuki Motor Thailand Co runs the 12-year-old plant in Rayong province, which has an annual manufacturing capacity of 60,000 units. It employs about 800 people.

The announcement comes as Japanese manufacturers face fierce competition from Chinese rivals in Thailand, as well as pressure to create more electric and hybrid vehicles. Suzuki intends to offer a lineup of six EV cars by 2030-2031. It expects to launch its first EV in India next year, with exports to Japan and Europe.

Suzuki Motor Corp

Suzuki Motor Corp Thailand

Suzuki’s Departure from North America

According to the Federation of Thai Industries (FTI), factory shutdowns in Thailand are projected to progressively grow after 1,600 to 1,700 were halted earlier this year owing to an economic slowdown, merger plans, or increased operating expenses.

According to FTI chairman Kriengkrai Thiennukul, the automotive industry is struggling since domestic sales are slowing and exports have declined in comparison to neighboring countries.

“We cannot be nicknamed the ‘Detroit of Asia’ anymore as Malaysia is replacing us,” stated Kriengkrai.

Suzuki Motors surprised the industry by exiting the Canadian and United States markets in 2013. This decision marked the end of a 30-year period for the corporation in North America.

The reasons are obvious: low sales, intense competition, and changed consumer tastes. Suzuki struggled to compete with rivals selling more popular models such as SUVs and trucks. Their product selection simply didn’t appeal to American and Canadian customers.

Suzuki Motors has decided to focus on markets where they still have a strong presence. This adjustment will allow Suzuki to focus resources on areas where they can compete more successfully.

For existing Suzuki owners in North America, the company vowed to provide parts and servicing through local dealers.

Employees who have endured employment uncertainty will also be impacted by the withdrawal. This exit demonstrated the company’s need to adapt in a rapidly changing car sector.

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