Back in early 2016, Proton singlehandedly dismantled the Suzuki brand in Malaysia, taking on all their existing dealers and aftersales one swoop. Before this happened, Suzuki had CKD operations with DRB-HICOM that cost them at least RM20 million to start back in 2007. The Pekan plant had robotic welding operations and was used to produce the rather popular Swift model for almost ten years.
With Suzuki leaving Malaysia, we lost yet another foreign investor in our automotive sector. And now 4 years later it looks like Suzuki has decide they might come back to Malaysia with Naza. Though no official statement has been released, it’s probably the case that any CKD operations will be limited for local consumption only.
What is confirmed though is that Suzuki Motor will be setting up production in Myanmar. Their factory there will conduct CKD operations that consists of welding, assembly and painting of automobiles. The plant is schedules to go live in September 2021 and it will have a capacity of 40,000 units.
Here’s the press release with more information.
PRESS RELEASE
Suzuki Motor Corporation’s subsidiary for production and sales of automobiles in Myanmar, Suzuki Thilawa Motor Co., Ltd., will construct a new plant, which will conduct welding, painting, and assembly of automobiles.
In line with the expansion of market in Myanmar, the new plant, which is scheduled to start operating from September 2021, will be constructed in an industrial park located in the Thilawa Special Economic Zone, southeast of Yangon. It will have an annual production ability of 40,000 units.
Suzuki has a long history in Myanmar, which started back in 1998 with the establishment of a joint venture, starting local production of motorcycles and automobiles from 1999. There are currently two plants in Myanmar that produce a total of four models: Carry, Ciaz, Ertiga, and Swift. In 2019, Suzuki produced 13,300 units (125% year-on-year) and sold 13,206 units (128% year-on-year) with a market share of 60.3%*.
With the construction of the new plant, Suzuki will meet the automobile market needs in Myanmar, which is projected to make further expansion.
