Severe rainstorms in Thailand hit the auto market hard, and supply chain disruptions caused Toyota and Honda to suspend production

Thailand, an iconic car market in Southeast Asia, has also attracted many major car manufacturers to establish production lines. However, recent heavy rains and floods have hit the local area hard, causing Bangkok and many surrounding industrial areas to be almost submerged in water. This has made it impossible for some auto parts suppliers to deliver parts to the factory on time. Currently, Toyota and Honda have been affected and have announced the suspension of production.

Floods in Thailand shut down all three Toyota plants.

Currently, Toyota Motor Thailand has suspended three of its main factories, and even the production facilities of Toyota Auto Works have been affected. According to the original factory, some local parts supply areas in Thailand have accumulated more than 320mm of rainfall in three days, resulting in water accumulation and impassable logistics routes, leaving the factory with no parts available.

On the other hand, Honda Automobile Thailand has also confirmed that its two major factories have entered a state of suspension. The original manufacturer pointed out that the suspension of production is not due to the flood damage to the factory itself, but to the impact of the supply chain. Some parts supply cannot be transported normally due to the flood. It is expected to resume production on October 7, but the specific time will still depend on the subsequent disaster.

Honda's Thailand plant announced a suspension of production due to flooding affecting the supply chain.

The reason why the floods in Thailand caused the shutdown of two major Japanese car factories is mainly because Toyota and Honda both implement the Just-in-Time production model. They do not store a large number of parts in the factory, which can reduce inventory costs and improve production efficiency. However, if parts transportation is interrupted, it will directly lead to the shutdown of the production line.

Since Toyota, Honda, Isuzu, Mitsubishi, Nissan and other car manufacturers currently have factories in Thailand, and many of the vehicles they produce are supplied to the global system, this flood will inevitably affect the shipment progress of many vehicles, but the specific scope of the impact has not yet been announced.