Toyota shuts down its factory in Thailand until mid-April

  • Toyota Motor will temporarily suspend operations at its plant in Thailand due to the spread of the coronavirus.
  • The Thai government has declared an emergency; social gatherings and foreign travellers are banned, domestic travel restricted, and only essential services provided – as the number of coronavirus cases surged.
  • Thailand accounts for 60% of Toyota’s vehicle production in Southeast Asia, so this will have a significant impact on business.

Thailand is the center of the automotive industry in Southeast Asia, and Toyota produced about 570,000 vehicles in 2019, including Corolla and Yaris. It is second only to Japan (3.14 million), China (1.4 million) and the United States (1.91 million).

Although the emergency declaration does not cover the operation of manufacturing plants such as automobiles, the decision was made due to decrease in demand for cars and to safeguard the health of employees.

Toyota has so far decided to suspend operations in the Philippines and Malaysia in Southeast Asia. In North America, the suspension of production will be extended from April 3 to 17, and the production in Japan will be suspended from April 3 at seven plants.

Author: Nabeel K

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