Japanese automaker Suzuki announced on June 7 that it will cease production of four-wheeled vehicles in Thailand by the end of 2025 and close its plant in Rayong. The main reason is the declining demand for small cars and the appreciation of the baht, which has reduced the profitability of exports. Local sales and after-sales services will continue. Vehicles produced in Thailand include the Swift, Ciaz, and Celerio, which were exported not only domestically but also to countries like the Philippines, Vietnam, and Central and South America. Going forward, Suzuki plans to supply vehicles produced in Japan, India, and Pakistan to Thailand and other export destinations.

Suzuki Thailand began production in March 2012 and reached its peak production in 2016. However, production in 2023 dropped to 7,579 units, about 87% lower than its peak. Sales also declined to 10,807 units, about 73% lower than its peak in 2013, and exports plummeted to 1,272 units, about 97% lower than its peak in 2015. After closing its Thai plant, Suzuki plans to provide job placement for some employees and support their transition to its motorcycle and outboard motor factory in Pathum Thani.

The baht has recently reached its highest level since July 1997, with 1 baht reaching 4.18 yen in early August. The South Korean won has also reached its highest level in eight years. The appreciation of Asian currencies has been driven by economic growth in Asian countries and widening interest rate differentials. Japan's economic strength is seen as declining compared to Asian countries. Suzuki's decision to close its Thai plant is expected to inevitably lead to a decrease in production and sales. It remains to be seen whether Suzuki can overcome these challenges and regain its competitiveness.