BANGKOK — Mazda Motor Corporation has announced a significant expansion of its operations in Thailand with a new $148 million (5 billion baht) investment to develop and manufacture hybrid electric vehicles (MHEV). The announcement came during a visit by Mazda President and CEO Masahiro Moro to Thailand’s Prime Minister at Government House on February 13.
The investment will establish Thailand as Mazda’s comprehensive production hub, featuring vehicle assembly, transmission development, battery production, and other automotive operating systems.
The Thai government has expressed strong support for this initiative, viewing it as a crucial step in advancing the country’s hybrid and EV industry while maintaining Thailand’s position as a major automotive manufacturing center.
“Mazda has a 70-year history in Thailand,” said Masahiro Moro. “Beyond our sales operations and dealer network, we have continuously invested in manufacturing facilities, including the AutoAlliance plant in Rayong established in 1995 and the Mazda Powertrain Manufacturing Thailand facility in Chonburi set up in 2015.”
The new investment will focus on producing Mazda’s B-SUV hybrid vehicles, with a targeted annual production capacity of 100,000 units. These vehicles will serve both the domestic market and export destinations including Japan, ASEAN countries, and other global markets. Production is scheduled to begin in 2027.
The project aligns with Thailand’s recent EV industry support measures, introduced in December 2024, which include reduced excise tax rates for hybrid (HEV) and mild hybrid (MHEV) vehicles. Under the new structure, MHEV vehicles meeting specific carbon emission standards will be eligible for tax rates between 10-12%.
To qualify for these incentives, manufacturers must meet several criteria, including:
- Maximum CO2 emissions of 120 g/km
- Minimum investment requirements of 5 billion baht between 2024-2028
- Use of locally produced key components, including batteries by 2026
- Installation of at least four out of six specified advanced driver assistance systems (ADAS)
This investment marks a significant milestone in Mazda’s commitment to Thailand’s automotive sector and represents a major step forward in the country’s transition to electric vehicle manufacturing.
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