"Japan's Nissan Motor cuts production in Thailand...1,000 job cuts and relocation policies"

Nissan Motor Co. is expected to cut or relocate about 1,000 jobs in Thailand as Japanese companies, which have been the "standards" of the Southeast Asian auto market, struggle with the Chinese electric vehicle offensive.

Nissan plans to halt some production at its first of its two plants in Thailand and consolidate operations to its second plant by September next year, an unnamed source said, according to Reuters.

As a result, it is known that about 1,000 employees at plant 1 will disappear or be relocated.

Kyodo news agency quoted industry sources as saying about 1,000 Nissan employees in Thailand will be laid off or relocated to other operations by fall 2025.

Thailand is Nissan's largest production center in Southeast Asia, with annual production capacity of Nissan's factories 1 and 2 in Thailand reaching 220,000 and 150,000 units, respectively.

However, Nissan's sales in Thailand fell 29.7% to 14,224 units in fiscal year 2023 (April last year to March).

Japanese automobile brands such as Toyota and Honda, which are centered on internal combustion engines, have taken more than 90% of the Thai market, but have reportedly fallen below 80% this year.

On the other hand, Chinese automakers such as BYD are rapidly dominating the Southeast Asian market, including Thailand, with cheap electric vehicles.

In this regard, Japanese carmaker Suzuki has decided to close its factory in Thailand by the end of next year.

Honda will also halt operations at its plant in Ayutthaya province in Thailand by next year and consolidate production into its Pratzinburi province plant.