Suzuki is doubling annual capacity at its Thai factory to 100,000 vehicles next year as part of its expansion into south east Asia.
Although strong in India, Suzuki has lagged behind rivals in ASEAN. The company opened its first factory in Thailand, in the central province of Rayong, in March 2012. It currently makes 50,000 Swift models a year and now plans to spend US$48.8m to add another vehicle.
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Vehicle sales in Thailand last year were around 1.5m units with Suzuki accounting only for about 2% of market share. The company also plans a plant in Indonesia to assemble compact minivans and other models that do not overlap with the Thai made models. It aims to create a supply network of parts and finished products spanning southeast Asia.
In the six major economies in the region, combined car sales last year tallied 3.48m units, roughly the same volume as in India. Sales grew 33% year on year, a highlight amongst key markets worldwide.
Suzuki said it plans to sell 2.7m cars worldwide in the fiscal year to 31 March 2014 with Asia accounting for 1.63m or 60%.
