Mazda Eyes Thailand as Key Hub for Electric SUV Production

Mazda SUV

Japanese automaker Mazda is setting its sights on Thailand to become the main production base for its electric and electrified compact SUVs. This move is part of Mazda’s broader strategy to expand its electric vehicle (EV) footprint and to meet the rising demand for environmentally friendly vehicles across the ASEAN region. The investment aligns with Thailand’s ambitions to be a central player in the electric vehicle manufacturing sector.

Strategic Investment in Thailand’s EV Industry

Mazda announced an additional investment of 5 billion baht ($148 million) in Thailand. According to Thailand’s Board of Investment (BOI), this significant financial commitment will enable Mazda to produce up to 100,000 electrified compact SUVs per year. The investment will not only support domestic demand but also fuel exports to Japan and other ASEAN nations, enhancing Mazda’s regional presence.

The investment will focus on two of Mazda’s key manufacturing facilities in Thailand: the Mazda Powertrain Manufacturing Thailand and the AutoAlliance plant. The latter is a joint venture between Mazda and U.S. automaker Ford. The company plans to enhance its vehicle production lines, including the development of engine and electric vehicle battery production, to support the company’s future electrified product offerings.

Mazda’s Strategic Shift Toward Electrification

This investment marks the beginning of Mazda’s gradual shift towards electric vehicle production. According to Masahiro Moro, Mazda’s President and CEO, this is just the start of their transition to xEV (electric vehicle) production. In 2024, like many of its Japanese counterparts, Mazda faced operational challenges, including the suspension of production due to scandals involving tampered safety test results. Despite this, Mazda is taking proactive steps to strengthen its position in the rapidly growing EV market.

The Thai market itself saw a decline in car production in 2024, with a 20% year-on-year drop, according to the Federation of Thai Industries (FTI). However, the Thai government’s support for the electric vehicle industry, including the extension of the BEV production requirements, is expected to provide a significant boost. As of the end of 2024, Thailand had produced nearly 10,000 battery electric vehicles (BEVs), signaling the country’s readiness to be a significant player in the EV landscape.

Conclusion: A Green Future for Mazda and Thailand’s Automotive Sector

Mazda’s focus on Thailand as an EV production hub reflects both the company’s commitment to sustainability and Thailand’s strategic importance in the global automotive industry. As Mazda advances its electrified product line, it aims to capitalize on Thailand’s growing automotive ecosystem and favorable policies supporting EV production. The company’s long-term goals will likely help strengthen both Thailand’s automotive sector and Mazda’s position in the global EV market.