Suzuki Motor Corporation (SMC) has decided to close its plant in Thailand by the end of 2025. The plant is located in Pluak Daeng, Rayong Province.
- Suzuki Thailand sales stood at a meagre 12,709 units in FY2023
- Will import hybrids and EVs from India, Japan, ASEAN markets
- EV sales in Thailand have reached 10 percent of total sales in 2023
Suzuki Motor (Thailand) has been witnessing dampened sales in Thailand; the company sold 10,807 cars in the domestic market and exported 1,272 units in FY2023. The Japanese automaker said that the decision has beent taken to “promote carbon neutrality and electrification globally”.
Following the announcement of the Eco Car project (previous-gen Celerio sold in India) by the Thai government in 2007, Suzuki applied for the project and established Suzuki Motor Thailand in 2011. The plant started production in March 2012, and produced around 60,000 units annually, including exports. Suzuki manufactures the Swift and Celerio hatchbacks, and Ciaz sedan in Thailand, but its portoflio also has imports like the XL7 hybrid, Ertiga Smart Hybrid, Jimny and the Carry commercial vehicle.
Suzuki has stated that it will continue its sales and aftersales to meet customers' needs in Thailand by importing CBUs from plants within the ASEAN region as well as Japan and India. Also, in order to contribute to achieving carbon neutrality goals promoted by the Thai government, the company will introduce electrified models, including hybrids.
Meanwhile, in a similar development, Subaru Corporation’s local manufacturer and distributor in Thailand announced that it plans to stop production of all models by end-December 2024, and that it will instead import models from Japan.
EVs gaining popularity in Thailand
Sales of passenger vehicles have been falling in Thailand. From their highest level of 6,72,460 units in CY2012, sales have fallen by 130 percent to 2,92,384 in CY2023. As per the latest data from the Federation of Thai Industries, a total of 82,903 units were sold between January and April 2024 with April's 17,288 units being the lowest (January: 23,412 units, February: 19,861 units, March: 22,342).
Thailand is among the ASEAN countries witnessing a shift to EVs. The country aims to become a major EV manufacturing hub for domestic and export markets, and is aiming to attract USD 28 billion (about Rs 2.34 lakh crore) in foreign investment within four years, backed by specific incentives to foster investment.
According to the International Energy Agency’s Global EV Outlook for 2024, electric car sales more than quadrupled YoY to nearly 90,000 units in 2023, reaching a notable 10 percent share. Chinese companies account for over half the sales to date, and they could become even more prominent given that BYD plans to start operating EV production facilities in Thailand in 2024.
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