Suzuki to Build Small Car Plant in Thailand

Suzuki is the latest biggest carmaker that intends to continue its expansion with the help of a Thai plant, as the company now plans to establish a brand new factory to handle small car production. Reuters informs that the future project will be able to accommodate 100,000 units per year and has already received government's approval.

According to the aforementioned source, Suzuki is ready to invest up to 20 billion yen (around $22 million) in the factory. The new factory in Rayong will open its doors in March 2012 and will manufacture 1.3-liter models.

The Japanese manufacturer, currently the fourth largest of its kind in the domestic market, wants to roll out up to 10,000 cars in the first year of the new plant.

Suzuki's plan is the result of Thailand's so-called eco-car project that is aimed at attracting overseas companies to invest in local operations. The government is offering up to 90 percent cuts in import taxes for foreign parts and materials for all carmaker participating in the programme.

Mazda is also planning to benefit from the project and started production of Mazda2, with initial capacity estimated at 20,000 units per year.

“The Thai-produced Mazda2 will be a key element in Mazda’s future growth in the ASEAN region, which is continuing to see growing demand for small cars. We consider that the Mazda2 model will also play a pivotal role in Mazda’s global strategy,” said Mazda’s Director and Senior Managing Executive Officer, Masazumi Wakayama, back in October when announcing plans for a Thai-built Mazda2.