Nissan To Cut Or Relocate 1,000 Jobs In Thailand
The company plans to halt production at one of its two Thai plants, consolidating operations into the second facility by September 2025
Nissan Motor is set to either cut or relocate approximately 1,000 jobs in Thailand as Japanese automakers face increasing pressure from the surge of Chinese electric vehicles in the Southeast Asian market.
The company plans to halt production at one of its two Thai plants, consolidating operations into the second facility by September 2025, according to an anonymous source cited by Reuters. This move will lead to the elimination or reassignment of around 1,000 employees from the first plant.
Thailand stands as Nissan’s primary manufacturing hub in Southeast Asia, with a combined annual production capacity of 3,70,000 units between its two factories. Despite this, Nissan's sales in Thailand saw a steep decline of 29.7 per cent in fiscal year 2023, dropping to 14,224 units.
Traditionally, Japanese car manufacturers like Toyota and Honda have held over 90 per cent of the Thai automotive market, largely focused on internal combustion engines. However, this figure dipped below 80% this year, reflecting the rise of Chinese brands like BYD, which are gaining ground with affordable electric vehicles.
In response to these shifts, other Japanese automakers are also making strategic adjustments in Thailand. Suzuki plans to shut down its factory by the end of next year, while Honda will cease operations at its Ayutthaya facility and concentrate production in Pratzinburi province by 2025.
