Mazda Motor Corp. will invest THB 5 billion (AUD 234 million) into producing electric vehicles in Thailand, according to Thailand’s Board of Investment. This may bode well for the Southeast Asian kingdom as its vehicle production rates have been consistently falling for 4 consecutive years.
MAZDA’S PLANS
Last week, February 14, Mazda held a press conference announcing their intentions to invest THB 5 billion (AUD 234 million) in Auto Alliance (Thailand) Co. Ltd., along with a new manufacturing base in Thailand. This new facility is set to produce compact SUVs with an expected production capacity of 100,000 units per year. Markedly, the Japanese auto giant will take advantage of the local supply chain which it has developed in the country for the last few decades.
“Mazda has built a strong business foundation in Thailand over the past 70 years with the support of many people, including the Thai government,” said Mazda President and CEO Masahiro Moro during the conference.
“This will reinforce the plant’s role as an export base focused on Japan and the ASEAN market which is expected to grow steadily, as well as strengthen sales in the Thai market where Mazda has been present for the past 70 years,” published the company in a statement.
A NEW LINE OF EVs
The plant will focus on producing electric SUVs for the Southeast Asian region. “We will introduce electrified products that are uniquely Mazda and meet the needs of customers in Thailand where electrification is progressing and strengthen the role of our plant in Thailand to serve as a base for exporting compact vehicles mainly to Japan and the ASEAN market,” said Moro.
Mazda will introduce a line-up of five new models; two battery electric vehicles (BEV), one plug-in hybrid EV (PHEV), and two hybrid cars. The company will launch the Mazda6e, one of the featured BEVs. Additionally, the production of this vehicle is assigned to Mazda and China’s Chongqing Changan Automobile (CA) Co., Ltd.’s joint venture, Changan Mazda Automobile Co., Ltd. It will feature CA’s smart and electric vehicle technologies integrated with Mazda’s signature design and a driving experience in line with the Jinbai-Ittai philosophy.
Mazda’s new production investment could very well benefit Thailand, which has suffered a four-year low in its manufacturing and sales. Just last year, Thailand saw a staggering 26.2 per cent decrease in sales and 20 per cent decrease in manufacturing on-year. The Federation of Thai Industries (FTI) predicts that the country will end 2025 with at least 1.5 million vehicles produced, close to its ending figure in 2024 of 1.47 million units.
With this new venture on hand, Thailand may be able to keep its reputation as the auto king of Asia.
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