Suzuki To Double Annual Production Capacity
News: Suzuki Motor plans to double annual production capacity at its Thai factory to 100,000 vehicles in 2014. The move will help the Japanese automaker expand its footprint in South East Asia. Suzuki's Thai plant, which was opened in the Rayong province in March 2012, makes 50,000 Swift cars annually. The company plans to spend an additional JPY5bn (US$48.79mn) on adding facilities to accommodate production of a new compact vehicle.
BMI View: Auto sales in Thailand in July 2013 fell 25.4% y-o-y, to 98,251 units, according to the Federation of Thai Industries (Gaikindo). In line with BMI's call for the market to contract in 2013, y vehicle sales have been steadily declining since May. Following the end of the first car scheme in 2012, sales are now increasingly dependent on fundamental market demand.