Suzuki Motor has announced plans to close its auto manufacturing plant in Thailand by the end of 2025 due to underwhelming sales and a strategic pivot towards more lucrative markets. Established in 2011 as part of Thailand’s eco-car initiative, the Suzuki Motor Thailand (SMT) plant once produced up to 60,000 fuel-efficient compact cars annually, including units for export. However, recent figures show a significant decline, with only 7,500 vehicles produced in the fiscal year ending March.
Despite the closure, Suzuki will maintain its presence in the Thai market by continuing to sell electric and hybrid vehicles through SMT. This move aligns with the company’s strategy to concentrate its Asian production efforts in Indonesia, Japan, and India, where market conditions are more favorable.
The shutdown also reflects the broader competitive dynamics within the Thai automotive market. Japanese automakers, including Suzuki, face growing pressure from Chinese manufacturers that dominate the emerging electric vehicle sector. While brands like Toyota and Isuzu still control a significant share of Thailand’s pickup truck market, the influx of Chinese hybrids and EVs is reshaping the landscape.
