Suzuki Motor Corp. said Friday it will close its auto plant in Thailand by the end of 2025, pulling out of local production as it is struggling with weak sales amid fierce competition with Chinese rivals.

About 800 workers at the plant run by Suzuki Motor (Thailand) Co. will be transferred to other operations of the local unit, such as motorcycle production, a Suzuki spokesman said.

The small-size vehicle specialist started output at the plant in Pluakdaeng, Rayong Province in 2012 and has manufactured models such as the Swift compact hatchback, the Ciaz sedan and the Celerio minicar.

The Thai auto market has been growing rapidly, becoming an automotive manufacturing hub known as the "Detroit of Asia." However, demand for compact vehicles did not meet initial expectations, with local consumers showing a stronger preference for sport utility vehicles and pickup trucks, according to Suzuki.

Chinese carmakers are also pushing ahead with their electric vehicles in the Thai market.

Still, the Japanese automaker will continue to sell vehicles in Thailand by importing them from other countries.

The Thai factory, which at its peak produced about 60,000 vehicles annually, built only 7,579 in fiscal 2023, the company said.

==Kyodo

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