The Thai Investment Board (BOI) has dismissed reports that Nissan will close one of its two factories in Thailand and said the Japanese automaker is only streamlining production.
Previously, the media reported that Nissan plans to close three factories worldwide in 2025, while cutting output and employment. Nissan's original factory in Thailand, which opened in 1975, was among those expected to close.
Narit Therdsteerasukdi - BOI General Secretary said that Nissan's directors in Thailand explained that this move is considered a "line integration" to rationalize operations. Some production activities will be transferred from the old Factory 1 to the new Factory 2, located in the same facility in Samut Prakan (Thailand).
Factory 1 will be converted to assemble bodywork, produce parts and logistics. Automobile assembly activities will be concentrated at Factory 2 with changes starting in the second quarter of 2025. The purpose is to cut fixed costs and prepare for new models.
Nissan affirmed that Thailand is still an important market for the company in the ASEAN region. Automobile factories in Thailand are wholly owned by Nissan in the region. Thailand is also home to Nissan's regional headquarters. To dispel the rumors, the company also reiterated its growth commitments in ASEAN and Thailand.
Nissan has also planned to invest more in new models for Thailand, expected to launch in 2026 and 2027. According to the company, the unit will seek government support measures for electric vehicle production, including reducing special consumption tax by 6-9% on hybrid vehicles (HEV) for 7 years from 2026. Mr Narit Therdsteerasukdi noted that measures to support HEVs require a minimum investment of 3 billion baht (about VND 2,264 billion) by 2027.
Recently, the merger deal between Honda and Nissan is said to have broken down, which is why information about Nissan closing its factory in Thailand has begun to spread. However, according to experts, Nissan needs to change to maintain business operations, make efforts to overcome the ongoing crises and soon catch up with market trends.
