Mazda plans to invest 5 billion baht ($150 million) in Thailand to manufacture electric compact sport utility vehicles (SUVs), Thailand’s Board of Investment announced on Thursday.
The investment is aimed at supporting both domestic sales and exports to Japan and other markets, including Southeast Asian countries, with a target production volume of 100,000 units per year. “This investment is to support domestic sales and exports to Japan and other countries, such as ASEAN (Southeast Asian) countries, targeting a production of 100,000 units per year,” said Mazda President Moro Masahiro, as quoted by the investment board.
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Mazdaās expansion comes at a time when Thailand’s automotive sector is facing headwinds. In 2024, domestic auto sales fell 26.2% amid tighter credit conditions caused by high household debt, which reached 89% of GDP by the end of the third quarter.
Total vehicle production last year reached a four-year low, and the Federation of Thai Industries forecasts 2025 output at 1.5 million vehicles, with one million units allocated for export.
Despite these challenges, Thailand remains Southeast Asia’s largest automotive production hub, hosting top global carmakers such as Toyota and Honda.
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The governmentās tax incentives and subsidies have also attracted significant investments from Chinese EV manufacturers, including BYD and Great Wall Motor, which have collectively invested over 102.7 billion baht ($3 billion) in local production facilities, according to the EV industry association.