Will Mazda be the dominant EV force in Thailand and the SEA region soon?
Mazda Motor Corporation is set to invest 5 billion baht (approximately USD150 million) in Thailand to establish production for electric compact sport utility vehicles (SUVs), as announced by Thailand’s Board of Investment on Thursday. This strategic investment aims to support both domestic sales and exports to key markets, including Japan and other ASEAN countries.
Mazda plans to target an annual production of 100,000 units, marking a significant step in its expansion within the electric vehicle (EV) sector. The new investment comes at a challenging time for Thailand’s automotive industry, which has seen production decline to a four-year low.
Moreover, in 2024, domestic auto sales fell by 26.2 percent, primarily due to tighter credit conditions at financial institutions and rising household debt, which reached 89 percent of the country’s GDP by the end of the third quarter. Despite these challenges, the Federation of Thai Industries’ automotive group projects that Thailand will produce 1.5 million vehicles in 2025, with 1 million units earmarked for export and the remainder for the domestic market.
Thailand remains the largest automotive production hub in Southeast Asia, serving as a critical export base for major global carmakers such as Toyota and Honda. Over the past few years, the Thai government has attracted significant investment in the electric vehicle sector, offering tax incentives and consumer subsidies.
This has also drawn attention from leading Chinese EV manufacturers, such as BYD and Great Wall Motor, who have invested over 102.7 billion baht (USD3 billion) in local production facilities. Mazda’s investment in Thailand represents a strategic shift toward electric mobility, aligning with the growing demand for sustainable transportation solutions across the region.
On top of that, as the automotive industry in Thailand continues to evolve, Mazda’s entry into the electric vehicle market will further enhance the country’s position as a leading EV production hub in Southeast Asia.
With the rise of EVs in the region, the Thai government’s continued support for green technologies and its role as a key player in the global automotive supply chain will be vital in ensuring the success of these investments. Mazda’s commitment to electric vehicle production in Thailand highlights the region’s growing importance in the global transition to sustainable and energy-efficient mobility solutions.
We got all this from Reuters and their full article is linked here. Thank you Reuters for the information and images.
