The government announced positive news that Auto Alliance is moving forward with an investment of over 7.4 billion baht to prepare for producing Mazda's Mild Hybrid Electric Vehicles (MHEV) for sale domestically and export to Japan and ASEAN.
On 8 July 2026 GMT+7, Ms. Ploytale Laksamee Sangchan, Deputy Spokesperson, revealed that the BOI board approved the investment promotion request from Auto Alliance (Thailand) Co., Ltd., a joint venture of Mazda Motor Corporation, to expand investment valued at over 7.4 billion baht. This is to upgrade the production process at the Eastern Seaboard Industrial Estate factory in Rayong Province to support manufacturing of the new Mazda model Mild Hybrid Electric Vehicle (MHEV), a hybrid powered by fuel and electricity.
Ms. Ploytale said this is good news as Mazda has chosen Thailand as the main production base for MHEV, with production set to begin in 2027 to serve the domestic market as well as export to Japan and ASEAN countries. This underscores Thailand's importance as a key manufacturing base aligned with global market demand and the future automotive technology transition. It also responds to the EV Board's support measures for MHEV production, which set a fixed excise tax rate for seven years (2026–2032).
"The government is ready to support investment through the BOI to encourage high-value foreign investment into Thailand. This investment to support Mazda vehicle production reaffirms Thailand’s capabilities and investment promotion policies. It also maintains Thailand’s role as an important manufacturing base for domestic sales and exports, meaning vehicles produced in Thailand’s factories will be trusted by the parent company and Mazda customers worldwide," Ms. Ploytale said.