Suzuki Thilawa is currently assembling vehicles from semi knocked down (SKD) kits where partially assembled parts of a product are put together.

The Japanese automaker says it plans to upgrade its operations in Myanmar to assembling completely knocked down (CKD) vehicles from completely non-assembled parts.

Suzuki says the work will involve painting, welding and final assembly of vehicles, which is why the new facility is required.

The company will spend an estimated ¥12 billion (K150 trillion) to build the facility which is expected to start operations by September next year. The plant, which will also be located in the Thilawa Special Economic Zone southeast of Yangon, is projected to have an annual production capacity of 40,000 units.

With the construction of the new plant, Suzuki says it will be better placed to meet the growing needs of the automobile market in Myanmar.

Suzuki has a long history in Myanmar, dating back to 1998 with the establishment of a local joint venture that started production of motorcycles and automobiles in 1999.The company currently has two plants in Myanmar sited in the South Dagon Industrial Zone and Thilawa Special Economic Zone that produce four models – the Carry small truck, Ciaz compact sedan, Ertiga MPV, and Swift subcomnpact.

The company says, in 2019 it produced 13,300 units (a 125 percent rise year-on-year) and sold 13,206 units (a 128 percent rise year-on-year) and had a market share of 60.3 percent in Myanmar.