Mazda plans US$150mil investment in Thailand EV production

BANGKOK: Mazda Motor Corp plans to invest 5 billion baht (RM669mil/US$150mil) in Thailand to produce electric compact sport utility vehicles, Thailand's Board of Investment said on Thursday.

The "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," the investment board said, quoting Mazda President Moro Masahiro.

The new investment comes amid a slump in Thailand's automotive industry, the region's largest, with production at a four-year low last year.

Domestic auto sales fell 26.2% in 2024, due to credit conditions at financial institutions tightening from soaring household debt, which was equivalent to 89% of gross domestic product at the end of the third quarter.

The Federation of Thai Industries' automotive group forecasts 2025 production at 1.5 million vehicles, with a million for export and the remainder for domestic sales.

Thailand is Southeast Asia's biggest autos production centre and an export base for some of the world's top carmakers, including Toyota and Honda.

In recent years, government tax breaks and consumer subsidies has drawn investment from Chinese EV makers like China's BYD and Great Wall Motor, which have poured in more than 102.7 billion baht (RM13.4mil/US$3bil) in production facilities, according to the EV industry association.