Suzuki is exiting Thailand, selling its Rayong factory to Ford as output plummets to 4,400 units. Read more about the shift in Asia’s auto landscape.
Suzuki Motor Corp. has confirmed a deal to sell its Rayong automobile factory in eastern Thailand to Ford Motor Co., marking the Japanese automaker’s complete exit from car manufacturing in the country. The move comes as Suzuki’s annual output in Thailand has collapsed from a peak of nearly 60,000 vehicles to just about 4,400 units in 2024.
Why Suzuki is Pulling Out
Since investing roughly ¥20 billion (about US$128 million) in the Rayong site in 2012, Suzuki built a plant with a design capacity of 80,000 cars per year. At its height, the facility mainly produced the Swift hatchback, one of Suzuki’s best‑selling models across Southeast Asia.
However, the compact‑car segment failed to capture the Thai market as expected. A strong Thai baht and regional economic volatility increased production costs, squeezing profit margins. As a result, Suzuki’s local volume fell sharply, prompting the company to reassess its regional strategy.
Ford’s Strategic Acquisition
Ford already operates a neighboring assembly plant in Rayong, where it builds its popular Ranger pickup and Everest SUV. Acquiring Suzuki’s 163‑hectare site will add roughly 65,000 m² of factory floor space, bolstering Ford’s manufacturing capacity and logistics network.
While the financial terms of the sale remain undisclosed, the transfer of land use rights and plant assets is expected to be finalized within the coming months. Ford’s leadership described the transaction as a long‑term commitment to Thailand, reinforcing the country’s role as a key export hub for ASEAN and beyond.
Implications for Southeast Asia’s Auto Sector
Industry observers argue that the Suzuki‑Ford deal signals a deeper shift in the Southeast Asian automotive landscape. Japanese manufacturers, once dominant in Thailand, are feeling mounting pressure from fast‑growing Chinese electric‑vehicle brands that target the low‑cost, small‑car segment.
- Reduced competition from legacy Japanese players could accelerate the rise of affordable EVs.
- Ford’s expanded footprint may position it to capture a larger share of both conventional and future electric models.
- Thailand’s status as a regional manufacturing hub remains strong, but its product mix is likely to evolve.
The transaction highlights how shifting consumer preferences, currency dynamics, and the electrification wave are reshaping strategies for global automakers in the fast‑moving Asian market.
For more insights on how this development affects car buyers and the broader industry, stay tuned to our coverage.