Mazda Invests $240M to Make Thailand MHEV Production Hub
Mazda will invest $240 million in Thailand to make it a regional production hub for mild hybrid electric vehicles, with manufacturing lines launching in 2027 to supply Japan and ASEAN markets.
Thailand's Board of Investment has approved a 7.4 billion baht investment by Auto Alliance (Thailand), a Mazda Motor Corporation joint venture, to upgrade production processes at its Eastern Seaboard Industrial Estate facility in Rayong province. The expansion will support manufacturing of Mazda's new Mild Hybrid Electric Vehicle (MHEV) models—hybrid vehicles combining fuel and electric power. Mazda has chosen Thailand as its primary MHEV production base, with production lines launching in 2027 to serve domestic markets and exports to Japan and ASEAN countries.
The investment reflects global market trends and vehicle technology evolution, and responds to Thailand's National EV Policy Board incentives offering fixed excise tax rates for seven years (2025-2031). Mazda operates four companies in Thailand covering vehicle manufacturing, automatic transmissions, automotive parts, sales, and regional marketing. Auto Alliance Thailand, established with Ford, serves as a key regional production hub for both pickup trucks and passenger vehicles, while Mazda Powertrain Manufacturing Thailand produces SKYACTIV engines and transmissions.
The investment will modernize production lines with automation and robotics for key processes including welding, body assembly, painting, and final assembly, improving efficiency and precision while meeting Euro 6 emissions standards and increasing clean energy use. The facility will produce B-segment SUVs with MHEV technology to boost fuel efficiency and reduce CO2 emissions, for both domestic sales and export to ASEAN countries and Japan.
The EV Board has set special excise tax rates at 10% (for vehicles emitting 100 g/km CO2 or less) and 12% (for 101-120 g/km) for seven years (2025-2031), requiring minimum additional investments of 5 billion baht. Conditions include using domestically produced batteries from 2025, critical components like traction motors from 2027, and installing at least four of six intelligent safety systems (ADAS). Mazda's selection of Thailand as its primary MHEV hub affirms global confidence in Thailand's automotive capabilities and marks a significant milestone for the nation's electric vehicle industry.
