Subaru Closes Factory In Thailand And Chooses Gross Import, Here's Why

Subaru Outback Reliability Test. (Doc. Subaru)

JAKARTA - Subaru officially stopped the operation of its manufacturing plant located in the Lat Krabang Industrial Estate, Bangkok, Thailand. This move marks a major strategic change for Subaru, who now chooses to import vehicles rather than produce them locally.

According to a report from NationThailand, Friday, January 3, this decision was taken to reduce production costs. Thailand's Industry Federation (FTI) president, Surapong Paisitpattanapong, explained that this change was driven by a shift in consumer preferences, where demand for hybrid vehicles is now far beyond internal combustion engine (ICE) vehicles.

"Produsen harus menilai basar produksi mereka karena perubahan preferential konsumen yang signifikan, ujar Surapong. Selain itu, ia juga menyorotikan meningkatnya persaingan dari merek-merek China yang secara agresif merebut lapangan pasar di Thailand, serupa dengan situasi di Indonesia.

The closure of this factory is not just a matter of cost efficiency. The low production volume of Subaru in Thailand is considered no longer feasible to support local manufacturing. Instead, Subaru will focus on importing high-tech vehicles to meet the increasingly advanced needs of the Thai market.

The 100,000 square meter plant began operating in April 2019, but is now officially closed following a joint decision between Subaru Corporation and Tan Chong International (TCIL). Last year, Subaru announced that all vehicles for the Thai market would be imported, marking the end of the country's local production era.

Subaru's move reflects a broader trend in the Thai auto industry. Previously, Suzuki also announced plans to stop local production by the end of 2025, making Subaru the second Japanese brand to choose this path.

With this change, Subaru hopes to allocate its resources more strategically, while still competing in the midst of the growing dynamics of the automotive market.