Don't Let Indonesia End Up Like Thailand, Abandoned by Japanese Automakers

Don’t Let Indonesia End Up Like Thailand, Abandoned by Japanese Automakers

Jakarta, CNBC Indonesia - Changes in the Southeast Asian automotive industry landscape are beginning to emerge. Thailand, long known as a production base for Japanese automakers, is now facing new challenges. Several major players are starting to reduce activities or even withdraw from the country.

For example, Suzuki’s factory has been leaving since 2025. Previously, Subaru had also announced the cessation of factory operations in Thailand.

Senior Researcher at ITB, Agus Purwadi, views this phenomenon as a warning for Indonesia, especially as dealerships for Japanese brands have also begun to close.

“Thailand means it’s already spreading. In Thailand, many Japanese players are starting to pack up,” he said, quoted on Friday (17/4/2026).

He stated that this situation is not unrelated to market pressures, including the increasing influx of imported products. This has eroded the competitiveness of the local industry in Thailand.

“Because the market there is higher than ours, the influx of imports becomes a problem,” said Agus.

Indonesia must not ignore the lessons from its neighbouring country. Various events in the region have actually provided many learnings.

“So actually, there are already many lessons learned that we must reflect on and adjust to the existing conditions,” he said.

He emphasised the importance of a quick response from the government so that Indonesia does not experience something similar. The global situation full of uncertainties also amplifies this risk.

“Especially as we are in the midst of uncertainty,” he continued.

In this situation, he assesses that policies must be focused on national industrial resilience.

“Well, that’s what I think the policy should be directed towards,” said Agus.

Citing automotiveworld, Japanese car manufacturers previously dominated Thailand’s automotive sector. In an article published on 27 January 2026, it was mentioned that in 2020, Japan previously controlled 90% of the market share in Thailand. However, it shrank to 70% in 2025.

At the same time, the market share of Chinese cars surged fourfold compared to 2022. Following the increasingly aggressive entry of GWM, BYD, Changan, MG, and Chery into the Thai market.

This condition is forcing Japanese manufacturers to consolidate their operations in Thailand more actively.

Previously, Nikkei Asia in May 2025 also reported something similar. The auto exhibition became a venue for Chinese cars to capture the market in Thailand.

This situation is the reverse of the previous one. Led by BYD, Chinese cars are increasingly showing their prowess through hybrid variants and other types besides electric vehicles (EV).