Mazda to invest THB5 billion to create MHEV production hub in Thailand

Plant to make 100,000 units, most of it for export

 

Mazda will invest over 5 billion baht in Thailand to establish a major production hub for its mild-hybrid (MHEV) B-SUV.  

 

The plant aims to produce 100,000 units annually for export, following the Thai government’s approval of support measures for the transition to electric vehicle manufacturing.

 

Narit Therdsteerasukdi, secretary-general of the Board of Investment (BOI), confirmed that Mazda president and CEO Masahiro Moro had announced the expansion plans. Thailand will become the primary production base for the MHEV, a hybrid vehicle combining a traditional engine with an electric motor.

 

The investment is a direct result of the National Electric Vehicle Policy Committee (EV Board) approving support measures in December 2024. They include reduced excise tax rates for hybrid (HEV) vehicle production (6-9%) and mild-hybrid (MHEV) vehicles (10-12%), effective for seven years from the start of the new tax structure in 2026. 

 

The BOI has also introduced investment promotion measures offering special privileges to manufacturers across all vehicle types who incorporate automation, robotics, and advanced technologies into their production lines.

 



 


"Mazda's investment to make Thailand its main production base for the B-SUV vehicle will help drive Thailand towards becoming a leading production and export hub for future vehicles in the region," Narit said.
 
 

Moro said that the investment supports Thailand's ambition to become a centre for electric vehicle (xEV) production. The 5-billion-baht investment will establish Thailand as Mazda’s production base for B-SUV vehicles, focusing on electric-assisted driving, energy efficiency, emission reduction and international safety standards.

 

The 100,000-unit annual production target is aimed at both domestic sales and exports to Japan, ASEAN nations, and other global markets. The investment will cover vehicle assembly and the production of key components, including engines, transmissions and batteries. 

 

Production is slated to begin in 2027 to meet rising demand for new-energy vehicles. Mazda will also prioritise developing a network of domestic parts suppliers capable of supporting new technologies, Moro said. The company views this as the first stage of a major investment in Thai electric vehicle production under its multi-solution approach.
  

According to Thansettakij media, the EV board’s approval in December of MHEV support measures, designed to position Thailand as a global MHEV production hub, includes specific benefits and investment conditions:


CO2 emissions must not exceed 120 g/km.


            Emissions below 100g/km: 10% excise tax rate.
            Emissions between 101-120g/km: 12% excise tax rate.


A minimum additional investment in Thailand of 1 billion baht between 2024 and 2026, and a total of 5 billion baht between 2024 and 2028, is required from vehicle manufacturers and their affiliates.
Key components must be manufactured or assembled in Thailand. Batteries produced domestically must be used from 2026, and key components like traction motors (or equivalent drive-enhancing parts) from 2028.
At least four of six advanced driver-assistance systems must be installed.


 

In 2024, there were 309 investment projects in the automotive and parts industry, totalling 102.366 billion baht. These included projects for various electric vehicle types (BEV, HEV, ICE), automotive parts, tyres, batteries, charging stations, and battery swapping stations.

(2025/02/13-00:00)