Mazda is investing 5 billion baht in Thailand to establish a production base for MHEV vehicles with an annual capacity of 100,000 units. Production is scheduled to start in 2027, with exports planned to Japan, Australia, New Zealand, and ASEAN countries.
Mr. Narut Terdsteerasak, Secretary-General of the Board of Investment (BOI), disclosed that on 8 Dec 2025 GMT+7, executives from Mazda Motor Corporation of Japan, led by Mr. Masahiro Moro, President and CEO, met with Mr. Aekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, along with the BOI Secretary-General at the Government House to present their investment plans in Thailand.
Following approval by the National Electric Vehicle Policy Committee (EV Board) of support measures for producing Mild Hybrid Electric Vehicles (MHEV), which use both fuel and electricity, with a fixed excise tax rate for seven years (2026–2032), Mazda Motor Corporation decided to invest over 5 billion baht to use Thailand as a production base for MHEVs for export. Investment will begin early 2026, with production expected to start mid-2027.
Currently, the Mazda Group has four companies in Thailand covering automotive production, engines, auto parts, sales, and regional marketing. They established AutoAlliance (Thailand) Co., Ltd. (AAT) in partnership with Ford as a key regional vehicle production base for pickups and passenger cars. To date, four projects have received BOI investment promotion, totaling over 30 billion baht.
Additionally, Mazda Powertrain Manufacturing (Thailand) Co., Ltd. (MPMT) was set up to make Thailand the main regional production base for SKYACTIV engine technology and transmissions, with three promoted projects totaling over 12 billion baht in investment.
This MHEV vehicle production investment in Thailand will focus on B-SUV models with an annual capacity of 100,000 units. Over 60 percent of output will be exported to Japan, Australia, New Zealand, and ASEAN markets.
The company and its customers trust the quality of vehicles produced in Thailand. Moreover, the plan aims for over 70 percent local content. This project marks the company's first step toward electric vehicle development, with a future goal of producing Hybrid Electric Vehicles (HEV).
Regarding support measures for MHEV production, the EV Board set special excise tax rates at 10 percent (for CO2 emissions up to 100 g/km) and 12 percent (for CO2 emissions between 101 and 120 g/km), fixed for seven years (2026–2032), with a condition of additional investment of at least 5 billion baht.
It also requires the use of key components produced or assembled domestically, including batteries made in Thailand from 2026, and essential parts such as traction motors or components assisting propulsion from 2028. Additionally, at least four out of six intelligent safety systems (ADAS) must be installed.
The government and EV Board have a clear goal to support the transition from internal combustion engine (ICE) vehicles to various electric vehicle types (xEV), including BEV, PHEV, HEV, and MHEV, aiming to position Thailand as a center for electric vehicle production and export in all categories.
Thailand is also targeted to become a regional supply chain hub. Mazda's major investment, with a production capacity of 100,000 units annually for exports including shipments back to Japan, marks a significant milestone for Thailand's electric vehicle industry, confirming that Thailand is on the right path and reflecting investor and consumer confidence in Thailand's ability to produce high-quality, world-class vehicles.