Nissan Thai Plant Ahead of Schedule, Despite Political Turmoil

Nissan remains confident in the Thai market despite the political and economic issues, and production at its second Thai factory will begin next month, ahead of schedule.

The plant will produce the newly launched all-new NP300 Navara, the 12th generation of Nissan’s hard-working pickup. The automaker says the new model boasts highly competitive fuel economy, improved acceleration and a more rigid and durable frame, plus a modern yet tough and strong design.

“Despite Thailand's political turmoil, we are not putting off operation of the second plant,” Nissan Thailand President Yoshimoto tells the Bangkok Post. “In fact, operations will start one month earlier than scheduled.”

The 10 billion baht ($308 million) plant, opening July 3, will have an initial annual capacity of 75,000 units, expandable to 150,000 units.

Production will be split roughly evenly for export and local markets.

Nissan Chief Planning Officer Andy Palmer tells The Nation newspaper the automaker fundamentally believes the underlying trend in the Thai market is one of growth.

Speaking on the sidelines of the NP300 Navara launch, he says, using a timeframe of five to 10 years, the basic indicators of the market show the kingdom essentially has a healthy economy.

Nissan's existing plant makes 220,000 pickup trucks and passenger vehicles a year, and once the second plant is running at full capacity annual production will reach 370,000 vehicles, excluding the 60,000 Navara pickups now built at Mitsubishi's factory at Laem Chabang in Chon Buri.

Yoshimoto says Nissan will continue producing the Navara for export only at the Mitsubishi plant to cope with strong global demand. But he says the company is poised to stop operations at there and move production to the new plant once global demand slows.

The NP300 Navara will reach Thai customers in August, with retail prices and export plans announced July 3. Nissan expects local sales for the pickup to average 3,000 units a month.

The truck comes equipped with improved versions of Nissan’s 2.5L DOHC 4-cyl. diesel or 2.5L 4-cyl. gasoline engine. The new diesel engine features maximum output of 187 hp, but can deliver 160 hp at just 3,600 rpm. Torque tops out at 332 lb.-ft. (450 Nm), but 297 lb.-ft. (403 Nm) is available at 2,000 rpm. Fuel economy has been improved by as much as 11% over the previous model.

Transmission options include a 7-speed automatic and 6-speed manual.

Yoshimoto says Nissan expects the Thai market to shrink to 900,000 to 1 million units this year, from 1.33 million in 2013.

“Nissan is very concerned about shrinking domestic sales, but we will try to stimulate the market with new models to boost our market share to double digits,” he is quoted as saying.