Japanese car manufacturers in Thailand are reducing production or shutting down due to competition from Chinese electric vehicles, impacting jobs amid the country’s shift toward EV dominance and concerns over labor rights.
Japanese automakers in Thailand, a longtime manufacturing hub, are facing significant challenges. Subaru will halt production this month, followed by Suzuki’s shutdown by late 2025, while Honda and Nissan plan to cut back output. The surge of Chinese electric vehicles (EVs) in the market contributes to these changes, as Thailand aims for 30% of its auto production to be electric by 2030.
As Chinese companies invest heavily, concerns rise among Thai auto workers about job security. Union leaders emphasize that many may struggle to find employment as these factories often prefer automation and foreign labor. Additionally, the shift towards EVs could make certain auto parts obsolete, threatening the livelihood of local suppliers.
Despite falling overall car sales, Chinese EVs remain a bright spot, with a notable sales increase. The Thai government urges local investment in hybrids and electric vehicles, but many auto parts manufacturers face uncertainty. A few may adapt to the new market demands, but many have already had to shut down due to stiff competition and changing technologies.
Source : In a global quest, Chinese EV makers invest big in Thailand
