Mazda invests US$150M to boost EV production in Thailand

Source： Release Date：2025-03-14 376

Metalworking Automotive

Mazda is making a significant push into electric and hybrid vehicle production with a US$150 million (THB 5 billion) investment in Thailand. The Japanese automaker aims to produce new compact electric SUVs, reinforcing Thailand’s position as a major automotive manufacturing hub.

According to Thailand’s Board of Investment (BOI), this investment will support both domestic sales and exports to key markets, including Japan and ASEAN countries. Mazda President Moro Masahiro stated that the new facility will have a targeted production capacity of up to 100,000 units annually.

This move comes at a crucial time, as Thailand’s automotive industry has faced a downturn, with production hitting a four-year low in 2024. Domestic car sales declined by 26.2% last year, the lowest since 2010.

Hybrid Focus Amid Thailand’s EV Transition

While initial reports suggested Mazda’s investment was for battery electric vehicles (BEVs), sources from The Nation Thailand indicate that the company’s primary focus will be on mild-hybrid electric vehicles (MHEVs). The new facility will serve as a major production hub for B-segment hybrid SUVs, with a similar production target of 100,000 units per year.

Thailand’s BOI Secretary-General, Narit Therdsteerasukdi, emphasized that Mazda’s investment aligns with the government’s push for EV manufacturing and sustainable mobility. “Mazda’s commitment to making Thailand its main production base for B-SUVs will accelerate the country’s position as a key production and export hub for next-generation vehicles,” he said.

Government Incentives to Drive Growth

Mazda’s decision follows the approval of new support measures by Thailand’s National Electric Vehicle Policy Committee (EV Board) in December 2024. These policies include reduced excise tax rates for hybrid electric vehicles (HEVs) and mild hybrids (MHEVs), with tax reductions ranging from 6-12%. These incentives will be in effect for seven years, starting in 2026.

Investment Scope and Future Plans

The $150 million investment will fund vehicle assembly as well as the production of critical components, including engines, transmissions, and batteries. Additionally, Mazda will establish a domestic supplier network to support manufacturing operations, with production expected to begin in 2027.

With this expansion, Mazda is reinforcing its commitment to Thailand’s automotive industry, supporting its transition toward hybrid and electric mobility while leveraging government incentives to strengthen its production capabilities in the region.