Suzuki to exit Thai manufacturing as Ford acquires Rayong plant
The deal marks a significant shift in the ASEAN automotive hub as Japanese carmakers lose ground to rapidly expanding Chinese electric vehicle brands
- Suzuki Motor has agreed to sell its manufacturing plant in Rayong, Thailand, to Ford Motor, and will cease all domestic production by the end of 2025.
- Suzuki's exit is prompted by a severe drop in production, from a peak of nearly 60,000 units per year to just 4,400, and the underperformance of small cars in the market.
- For Ford, the acquisition is a strategic expansion of its existing Thai operations, reinforcing the country's role as a key export hub for its Ranger and Everest models.
- The deal highlights a significant market shift where Japanese automakers are losing dominance in Thailand to rapidly expanding Chinese electric vehicle brands.
The deal marks a significant shift in the ASEAN automotive hub as Japanese carmakers lose ground to rapidly expanding Chinese electric vehicle brands.
In a move that signals a tectonic shift in Southeast Asia’s automotive landscape, Suzuki Motor has agreed to sell its Thai manufacturing facility to Ford Motor.
The exit of the Japanese compact-car specialist highlights the mounting pressure on traditional manufacturers as Chinese brands aggressively seize market share.
According to a report by Nikkei Asia, the two carmakers have formalised a deal for the plant located in Rayong province.
While the financial terms remain undisclosed, the transfer of land and assets is expected to be completed within the coming months.
A Sharply Diminishing Footprint
Suzuki’s exit marks the end of a chapter that began in 2012. The Japanese firm originally invested approximately ¥20 billion ($128 million) to establish the site, which boasts an annual capacity of 80,000 vehicles.
At its zenith, the plant produced nearly 60,000 units a year, notably the popular Swift hatchback.
However, data from research firm MarkLines illustrates a stark decline. Production plummeted to just 4,400 units in 2024.
A Suzuki spokesperson told Nikkei that the decision was driven by the failure of small cars to penetrate the market as anticipated, exacerbated by a strong Thai baht and other economic factors.
Consequently, Suzuki will cease all domestic manufacturing in Thailand by the end of 2025.
Ford’s Strategic Consolidation
For Ford, the acquisition represents a significant expansion of its "Detroit of the East" operations.
The American firm already produces its flagship Ranger pickup and Everest SUV at an adjacent site.
The acquisition of the 412-rai (163-acre) Suzuki plot provides Ford with an additional 65,000 square metres of floor space.
A Ford representative noted that the move reinforces the company’s long-term commitment to Thailand as a primary export hub for the wider ASEAN region.
The Rise of Chinese Competition
The deal is a symptom of a broader trend: the erosion of Japanese dominance.
In 2020, Japanese brands controlled 90% of the Thai market. By late 2025, that figure had fallen to 69%.
The vacuum is being filled by Chinese manufacturers, led by BYD. Sources suggest Suzuki initially considered selling the site to BYD before settling on terms with Ford.
Between 2022 and late 2025, the market share of Chinese automakers in Thailand quadrupled, reaching 21% as they capitalised on the region’s rapid shift toward electrification.
