Mazda is making a bold move in Southeast Asia, announcing that Thailand will become its main production hub for Mild Hybrid Electric Vehicles (MHEVs). With a hefty investment of THB 5 billion (RM659 million), the automaker is gearing up to take its hybrid game to the next level.
The decision was sealed on 13 February 2025, following a meeting between Mazda Motor Corporation President & CEO Masahiro Moro and Thailand’s Prime Minister Paetongtarn Shinawatra. This aligns perfectly with Thailand’s goal of becoming a regional powerhouse in next-gen electric vehicle manufacturing.
Thailand’s Push for Hybrid Leadership
The Thai government has been actively supporting hybrid and mild hybrid vehicle production, with the National Electric Vehicle Policy Committee (EV Board) rolling out incentives like excise tax reductions for HEVs (6-9%) and MHEVs (10-12%). These incentives will be in place from 2026 to 2032, making it the perfect time for Mazda to ramp up production.
Mazda is aiming to produce 10,000 hybrid vehicles per year for both domestic sales and exports. It’s an ambitious goal, but the brand isn’t new to Thailand—Mazda has been in the country for 70 years and already runs two major production facilities:
- AutoAlliance Thailand (AAT) in Rayong – producing passenger and commercial vehicles since 1995.
- Mazda Powertrain Manufacturing Thailand (MPMT) in Chonburi – manufacturing engines and transmissions since 2015.
A Big Leap for Mazda’s Hybrid Plans
This fresh investment will focus on B-SUV models equipped with MHEV technology, designed to boost fuel efficiency and cut emissions. The expansion will cover vehicle assembly, engine and transmission production, and even battery manufacturing, with operations expected to kick off in 2030. Mazda also plans to work with local suppliers to integrate new energy vehicle (NEV) technology into its production chain.
But that’s not all—Mazda has teased a brand-new compact SUV as part of the investment! While details are scarce, concept images shown at the signing ceremony suggest it could be a B-segment model.
More Models Coming to Thailand
Mazda isn’t stopping at hybrids. By 2027, the company plans to launch five new models in Thailand, including:
- Two hybrid electric vehicles (HEVs)
- One plug-in hybrid (PHEV)
- Two battery electric vehicles (BEVs)
Among these, one of the biggest highlights is the Mazda 6e, which is expected to be introduced in Thailand—marking its first launch outside of China and Europe.
With this major investment, Mazda is doubling down on Thailand’s growing role as a hybrid and EV production hub. Between tax incentives, new models, and cutting-edge tech, the future looks bright for both Mazda and Thailand’s automotive industry.
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