Bangkok: Mazda has announced a significant investment of 5 billion baht to establish a production base for Mild Hybrid Electric Vehicles (MHEVs) in Thailand. The company plans to begin production in 2027, with a capacity of 100,000 units per year, targeting export markets in Japan, Australia, New Zealand, and ASEAN countries.
According to Thai News Agency, Mazda’s decision comes after a meeting between Mazda Motor Corporation’s delegation, led by President and CEO Mr. Masahiro Moro, and Thailand’s Deputy Prime Minister and Minister of Finance, Mr. Ekniti Nitithanprapas. The meeting, held at Government House, involved discussions on the company’s investment plan, following the National Electric Vehicle Policy Committee’s approval of measures to support MHEV production. These measures include a fixed excise tax rate for 7 years, from 2026 to 2032, encouraging Mazda to use Thailand as a production hub for MHEVs aimed at international markets. Production is set to commence in mid-2027, with investments beginning in early 2026.
Mazda currently operates four companies in Thailand, covering various aspects of the automotive industry, including vehicle manufacturing, engine production, and sales. The company has established AutoAlliance (Thailand) Co., Ltd. in partnership with Ford as a key regional production base. This initiative has received significant backing from the Board of Investment (BOI), with several projects totaling over 30 billion baht. Additionally, Mazda Powertrain Manufacturing (Thailand) Co., Ltd. focuses on producing SKYACTIV engine technology and transmissions, with investments totaling over 12 billion baht.
The new MHEV production will emphasize B-SUV models, with over 60% of units destined for export. The project aims to utilize over 70% locally sourced components and represents Mazda’s initial foray into electric vehicle development, with future plans for hybrid vehicle production.
The EV Board has outlined specific measures to support MHEV production, including a special excise tax rate of 10% for CO2 emissions not exceeding 100 g/km and 12% for emissions between 101-120 g/km. Additional conditions include a minimum investment of 5 billion baht and the use of key domestically manufactured components, such as batteries and traction motors, along with the installation of Intelligent Driver-Assisted Safety Systems.
Mr. Narut Teodsathirasak, Secretary-General of the Board of Investment, emphasized the government’s commitment to transitioning from internal combustion engines to electric vehicles, positioning Thailand as a hub for electric vehicle production and export. He praised Mazda’s investment as a significant milestone for the Thai electric vehicle industry, highlighting Thailand’s capability to produce high-quality vehicles for global markets.