Japan-based auto giant Toyota might reconsider its plans to invest about 20 million baht in Thailand. The head of the auto giant’s local unit?said that the company might even consider stopping production if political unrest in the country continues indefinitely.
The company is the biggest auto manufacturer in Thailand and produces 800,000 vehicles each year. Kyoichi Tanada, the president of Toyota?s Thai unit said that they have previously planned to increase the annual production capacity by 200,000 vehicles over the next three to four years, but those plans now seem to be uncertain.
Tanada said, ?Our new investment in Thailand may not happen if the current political crisis goes on longer?. Thailand is the biggest car market in Southeast Asia, in addition to being the regional vehicle production and export base for some of the top car manufacturers in the world, including Honda and Ford. For more than two months, protesters have been trying to bring down the government of Thailand and force ministries to close.
If the current unrest affects economic growth in Thailand, then the company may seriously think of cutting production in the country. The official from Toyota went on to say that since the shut down, very few visitors are going to their showrooms and that they have already cut down their car output.
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