Mazda Plans $150 Million Investment in Thailand EV Production

Mazda Motor Corp. plans to invest $150 million in Thailand to produce electric compact sport utility vehicles.

Mazda has got big plans for its EVs, with the Japanese automaker now making big investments in the production of its future EVs. The latest of which is its venture in Thailand, as Mazda plans to invest $150 million (RM666 million) in said Kingdom to produce its new electric compact sport utility vehicles.

As reported by The Edge Malaysia, Thailand’s Board of Investment (BOI) has stated that this THB 5 billion investment is to support domestic sales and exports to Japan and other countries, like those in the ASEAN region. Quoting Mazda president Moro Masahiro, this new EV production facility will have a targeted production of up to 100,000 units per year.

The new investment comes amid a slump in Thailand's automotive industry, which is the largest in the region, with production at a four-year low last year. Domestic auto sales fell 26.2% in 2024, which is the lowest since 2010.

In a separate report by Thailand’s The Nation, however, it is said that instead of BEVs, Mazda’s $150 million investment in Thailand is to establish a major production hub for its mild-hybrid (MHEV) B-SUV first, also with an annual production capacity of up to 100,000 units.

Secretary-General of Thailand's Board of Investment, Narit Therdsteerasukdi

The Nation also quoted the secretary-general of the Thailand Board of Investment, Narit Therdsteerasukdi, where he said this investment is in line with the Thai government’s approval of support measures for the transition to electric vehicle manufacturing.

“Mazda's investment to make Thailand its main production base for the B-SUV vehicle will help drive Thailand towards becoming a leading production and export hub for future vehicles in the region," Narit said.

Additionally, this investment is also said to be the direct result of the National Electric Vehicle Policy Committee (EV Board) approving support measures in December 2024. They include reduced excise tax rates for hybrid (HEV) vehicle production (6-9%) and mild-hybrid (MHEV) vehicles (10-12%), effective for seven years from the start of the new tax structure in 2026.

Back to Mazda, this $150 million investment will cover vehicle assembly and the production of key components, including engines, transmissions, and batteries, while a new network of domestic parts suppliers will also be developed to cater to the production, which will start from 2027 onwards.

Source: The Edge Malaysia, The Nation Thailand