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Isuzu Plans Car Production Shift from Thailand to Indonesia

Isuzu Motors, a prominent Japanese car manufacturer, is reportedly preparing to relocate its car production operations from a factory in Thailand to Indonesia, according to the Indonesian Industry Minister. The anticipated production shift is expected to commence as early as next year.

The Indonesian Industry Minister expressed appreciation for Isuzu’s decision and stated that the government would extend incentive offers and provide support throughout the relocation process. The minister made these remarks after a meeting with Isuzu’s management in Tokyo.

However, representatives from Isuzu in Thailand have yet to confirm or provide any official statement regarding this news.

Currently, Isuzu operates two automobile factories in Thailand, situated in the provinces of Samut Prakan and Chachoengsao. These factories have a combined production capacity of 385,000 vehicles per year and employ approximately 6,000 individuals.

In Indonesia, Isuzu already maintains a car factory located in Karawang. Further details about the specific production plans, the scale of the shift, or any potential impacts on the existing factories in Thailand remain undisclosed.

The reported move by Isuzu indicates the company’s strategic considerations for optimizing production and enhancing its presence in the Indonesian market. Shifting car production to Indonesia could offer advantages such as proximity to target consumers, cost efficiencies, or access to specific regional supply chains.

As the automotive industry continues to evolve, the planned production shift by Isuzu underscores Indonesia’s attractiveness as a manufacturing destination for global automakers. The Indonesian government’s commitment to providing incentives and support for such relocations reinforces the nation’s ambition to foster investment, promote economic growth, and strengthen its automotive sector.

The coming months will likely provide more clarity regarding Isuzu’s plans and the potential impact on its operations in Thailand and Indonesia. Industry observers will closely monitor any official announcements or developments related to this significant shift in Isuzu’s production strategy.

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