Mazda is investing 5 billion baht (approximately USD150 million) to establish Thailand as its main production hub for new mild hybrid electric vehicles (MHEVs).
The investment will focus on producing new compact B-SUV models at Mazda’s existing facilities in the Rayong area, with production slated to begin in 2027.
Facility Details
Location: The investment will involve upgrading Mazda’s existing manufacturing base in Thailand, which includes the AutoAlliance (Thailand) Co., Ltd. (AAT) vehicle assembly plant in Rayong and the Mazda Powertrain Manufacturing (Thailand) Co., Ltd. (MPMT) engine and transmission plants. A new, dedicated facility is not being built, but rather current operations are being enhanced to support MHEV production. AutoAlliance Thailand is Mazda’s joint venture with Ford and serves as a production base for pickup trucks and passenger cars.
Production Target: The upgraded hub will have a targeted annual production capacity of 100,000 units.
Models Produced: The facility will focus on manufacturing new, high-performance compact B-SUV models with MHEV technology.
Markets: Vehicles produced will serve both the domestic Thai market and be exported to other countries, including Japan and other ASEAN nations.
Investment Scope: The investment will cover vehicle assembly and the production of key components, including engines, transmissions, and batteries. Mazda also aims to incorporate a high percentage of local content (over 70%) to reinforce the domestic supply chain.
This investment is a direct result of the Thai government’s incentives to promote electric vehicle manufacturing in the country, which include reduced excise tax rates for MHEVs meeting specific criteria. Mazda views this MHEV project as the first stage of a larger investment plan in Thai electrified vehicle (xEV) production, with plans to expand into full hybrid and potentially other electric vehicle types in the future.
Mazda’s new mild hybrid (MHEV) investment in Thailand will focus on producing new B-SUV (small SUVs), including the upcoming next-gen CX-3 and potentially the next-gen CX-5, aiming for 70%+ local content for ASEAN, Japan & Australia exports, marking a significant step towards electrification in the region.
Take note that Chinese auto manufacturers like GWM, Changan, BYD and German auto brand BMW have all invested heavily in Rayong, Thailand in recent years.
Interestingly, did you know that Mazda considers the period up to 2030 to be the “dawn of electrification“, and under the 2030 Management Policy, the company will promote electrification with multi-solution to flexibly respond to diversifying customer needs and environmental regulations.
The “Lean Asset Strategy”, announced earlier this year, is an implementation strategy to enhance Mazda’s corporate value as a niche player by increasing the utilisation of existing assets in the timely development, production and market introduction of diverse products and electrification technologies.
