Kawasaki will produce its medium to large motorcycles in Thailand.
The move will mark the first for a Japanese motorcycle company to transfer production to a developing country, to take advantage of reduced production and labour costs.
The production move to Thailand is expected to take place from 2010, although no further information is available as to volume or how this will affect the local Japanese production market.
While Thailand is no stranger to motorcycles, particularly with a booming scooter market of its own, the change might spark concerns over quality.
The report also says that Honda may follow to Thailand, in a cost-cutting move of its own.