One of Thailand's largest automotive component manufacturers, Thai Summit Group, said it would suspend production at one of its 26 factories in the region for two months due to falling demand from local automakers.
Domestic vehicle sales declined by 7.5% to just over 238,000 units in the third quarter of 2019 while vehicle production fell by almost 8% to 504,000 units – reflecting also weak export demand.
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In September, domestic sales were down by over 14% to 76,195 units, while overall output in the country was down by 7.5% at 169,474 units.
Thai Summit, which makes vehicle chassis components, metal and plastic body parts, wiring and electrical items, said in a letter to its employees that it would suspend operations of one of its plants for two months starting 26 October due to overcapacity.
This followed an announcement in August by General Motors, saying it would cut 350 jobs, or 15% of its workforce in the country, while Mitsubishi Motors and French components manufacturer Valeo have introduced early retirement programmes at their local operations in recent months, according to local reports.
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By GlobalData
