TOKYO: Mazda Motor Corp is shifting some production of cars destined for the Australian market from Thailand to Japan, citing the adverse impact of a stronger Thai baht, according to the Nikkei newspaper.

Assembly of CX-3 sports utility vehicles will be moved to its Yamaguchi factory in southwest Japan this year, the report said, without citing anyone. Mazda has the capacity to make about 135,000 cars in Thailand annually.

The baht has climbed more than 8% against the dollar over the past year, hurting Thailand’s export-oriented economy. The kingdom is on track for its slowest economic growth since 2014, facing headwinds including the US-China trade dispute and political uncertainty.