Suzuki to exit Thai manufacturing as Ford acquires Rayong plant
Nation, 26 Jan '26
The regional automotive landscape is undergoing a transformation as traditional manufacturers face increased competition from emerging electric vehicle brands, a trend evident in Thailand where Japanese carmakers are losing market share.
In this context, Suzuki Motor has agreed to sell its Thai manufacturing facility to Ford Motor, indicating a change in the ASEAN automotive hub.
The exit of the Japanese compact-car manufacturer reflects the pressure on traditional automakers as Chinese brands expand their presence in the region.
According to a report by a daily newspaper, the two companies have formalised a deal for the plant located in Rayong province.
While the financial terms have not been disclosed, the transfer of land and assets is expected to be completed within the coming months.
Diminishing footprint
Suzuki's exit concludes operations that began in 2012. The Japanese firm originally invested approximately JPY 20 billion (US$ 129.85 million) to establish the site.
A Suzuki spokesperson told media sources that the decision was driven by the limited market penetration of small cars, compounded by a strong Thai baht and other economic factors.
As a result, Suzuki will cease all domestic manufacturing in Thailand by the end of 2025.
Ford's strategic consolidation
The acquisition expands Ford's operations in Thailand, where it already produces the Ranger pickup and Everest SUV at an adjacent site.
The Suzuki plot adds additional floor space. A Ford representative stated that the move supports the company's continued use of Thailand as an export hub for the wider ASEAN region.
Chinese competition
The transaction reflects a broader market trend in which Japanese manufacturers' market share in Thailand has decreased.
In 2020, Japanese brands accounted for 90% of the Thai market; by late 2025, this had declined to 69%.
Chinese automakers, led by BYD, have increased their market share. Sources indicate that Suzuki initially considered selling the site to BYD before finalising terms with Ford.
Between 2022 and late 2025, the market share of Chinese automakers in Thailand rose to 21%, coinciding with the region's transition toward electric vehicles.
