Mazda to invest RM 659 million into Thailand; new B-SUV coming, country to be main MHEV production hub
Mazda has announced a Mazda has announced a THB 5 billion (~RM 659 million) investment in Thailand to establish the country as its main production hub for Mild Hybrid Electric Vehicles (MHEV), with a target of 100,000 units per year for domestic sales and export. The move aligns with the Thai government’s push to position the nation as a leader in next-generation electrified automotive vehicle manufacturing.
The investment was confirmed during a meeting between Mazda Motor Corporation President & CEO Masahiro Moro and Prime Minister Paetongtarn Shinawatra on 13-February 2025. The initiative follows the National Electric Vehicle Policy Committee (EV Board)’s approval of measures to support hybrid and mild hybrid vehicle production, including excise tax reductions for HEVs (6-9%) and MHEVs (10-12%) for the next seven years (2026-2032).
Mazda, which has been present in Thailand for over 70 years, already operates two major production facilities: AutoAlliance (AAT) in Rayong, producing passenger and commercial vehicles since 1995, and Mazda Powertrain Manufacturing Thailand (MPMT) in Chonburi, manufacturing engines and automatic transmissions since 2015.
The new investment will support the production of B-SUV models with MHEV technology, improving fuel efficiency and reducing emissions. The expansion will include vehicle assembly, engine and transmission manufacturing, and battery production, with operations expected to begin in 2030. Mazda will also collaborate with local suppliers to integrate new energy vehicle (NEV) technology into the production chain.
Moro emphasised that this expansion represents one of Mazda’s largest investments in Thailand, reinforcing the company’s multi-solution approach to sustainable mobility and its long-standing commitment to the country’s automotive industry. The initiative is expected to strengthen Thailand’s role as a major export hub for electric and hybrid vehicles in ASEAN and beyond.
