By Prime Minister Srettha Thavisin has reassured the automotive industry of continued strong support following Suzuki Motor Corporation’s announcement to end car production at its Rayong plant by the end of 2025. This closure, which will affect 800 employees, aligns with Suzuki’s shift towards electric vehicle production outside Thailand. In meetings with major automotive companies such as Toyota, Honda, Isuzu, Mazda, and Mitsubishi, Srettha confirmed the government’s readiness to support their operations in Thailand. The commitment was reinforced by the positive outcomes of the ASEAN-Japan 50th anniversary meeting last December, boosting these firms’ confidence to increase their investments in the country.
Government Support for the Automotive Industry
Prime Minister Srettha Thavisin has emphasized the government’s commitment to supporting the automotive industry in Thailand. Despite Suzuki’s decision to cease car manufacturing, the government is actively working with other major automotive companies to ensure their continued operations and investments in the country. The Prime Minister’s meetings with representatives from Toyota, Honda, Isuzu, Mazda, and Mitsubishi have been instrumental in reinforcing this commitment.
The positive outcomes of the ASEAN-Japan 50th anniversary meeting last December have further boosted the confidence of these firms to increase their investments in Thailand. The government is focused on creating a conducive environment for the automotive industry to thrive, with a particular emphasis on supporting the transition towards electric vehicles. This includes providing incentives and infrastructure to facilitate the production and adoption of electric vehicles in the country.
Addressing Labor Market Challenges
The transition towards electric vehicles has presented challenges, particularly in labor markets such as Chachoengsao province. The Federation of Thai Industries has raised concerns about the impact of economic policies and rising costs on the industry’s competitiveness. The closure of Suzuki’s Rayong plant, which will affect 800 employees, has highlighted the need for effective measures to address labor market challenges.
Prime Minister Srettha Thavisin has assured that the government is actively working with industry leaders to address these issues. This includes providing support for retraining and upskilling workers affected by the transition to electric vehicle production. The government is also exploring opportunities to attract new investments in the automotive sector, which will create new job opportunities and support economic growth.
Suzuki’s Ongoing Commitment to Thailand
While Suzuki will cease car manufacturing in Thailand, the company will continue to produce motorcycles and maintain its extensive service center network. This move affirms Suzuki’s ongoing commitment to the Thai market and its customers. The company’s shift towards electric vehicle production outside Thailand is part of its broader strategy to align with global trends and regulatory requirements.
Suzuki’s decision to focus on motorcycle production and service centers in Thailand reflects its confidence in the country’s market potential. The company is committed to providing high-quality products and services to its customers, while also contributing to the local economy. The government’s support for Suzuki’s ongoing operations is crucial in ensuring a smooth transition and minimizing the impact on employees and the community.