The Thailand Board of Investment (BOI) has denied claims that Nissan is shutting down one of its factories in Thailand, clarifying that the automaker is merely streamlining its production process.
Recent media reports suggested that Nissan was set to close three global facilities this year, reducing both its production capacity and workforce. Nissan’s first factory in Thailand, which opened in 1975, was rumored to be facing closure.
Narit Therdsteerasukdi, the BOI secretary-general, explained that Nissan Thailand’s management described the changes as “line integration” to enhance efficiency.
Production activities are shifting from the older Plant 1 to the more recent Plant 2, inaugurated in 2014, both situated in Samut Prakan.
Plant 1 is being redesigned to focus on body assembly, parts stamping, and logistics operations.
The bulk of car assembly will now be centralized at Plant 2, with these adjustments starting in the second quarter of 2025. This restructuring aims to reduce overhead costs and make way for upcoming models.
Nissan has confirmed that Thailand continues to be a crucial market in the ASEAN region.
The Thai production site is Nissan’s sole wholly-owned facility in the area, and it also houses the company’s regional headquarters. Nissan reiterated its commitment to expanding its presence in ASEAN and Thailand.
Nissan is planning additional investments in Thailand for new models scheduled to launch from 2026 to 2027. The company will seek government support for electric vehicle production, including a reduced excise tax of 6-9% on hybrid electric vehicles (HEVs) for the next seven years, starting in 2026.
Mr. Narit said these HEV supports require a minimum investment of 3 billion baht by 2027, the use of local components (batteries starting in 2026, other parts beginning in 2028), the incorporation of at least four of the six advanced driver-assistance systems (ADAS), and CO2 emissions under 120g/km, with more favorable rates for even lower emissions.
Mr. Narit stated, “The government and BOI are dedicated to supporting the automotive industry, especially Japanese companies that have invested in Thailand for over 50 years, to maintain their competitiveness and transition smoothly to electric vehicles.”
He added, “The EV Board and BOI have introduced numerous measures to support the production of various electric vehicles – BEV, PHEV, HEV, and MHEV – aiming to make Thailand a leading production and export hub for next-generation vehicles.”
