Japanese carmaker Mazda Motor Corporation has planned to implement its 11.48-billion-baht hybrid electric vehicle (EV) projects over five years after winning Board of Investment (BoI) privileges on Monday.
The BoI board, chaired by Prime Minister Prayut Chan-o-cha, granted the privileges to Mazda through AutoAlliance Thailand (AAT), a joint venture with Mazda and Ford that produces 270,000 vehicles per year in Rayong province.
Mazda proposed a plan to localise assembly of finished cars and invest in essential EV components, expecting to use local components worth 19.5 billion baht per year.
Thee Permpongpanth, vice-president for marketing and government affair of Mazda Sales Thailand, the local unit of the Hiroshima-based firm, told the Bangkok Post the carmaker is studying the business feasibility of all EV-related suppliers for future hybrid EVs.
The investment plan includes five vital EV parts -- batteries, traction motors, battery management services, AC/DC converters and inverters.
"We have to specify a target for hybrid EVs to suppliers as Mazda cannot produce all parts and the investment plan will produce passenger cars alone," said Mr Thee.
AAT makes three passenger cars: Mazda2, Mazda3 and Mazda CX-3.
The Mazda3 has a hybrid option that is produced at Mazda's Hofu plant in Yamaguchi prefecture, which serves only the Japanese market.
He said the investment plan in Thailand is in line with the parent firm's goals, which aim to offer EV options for all models by fiscal 2030, which ends in March.
The BoI approved two other projects in the same board meeting.
Projen Holding Thailand Co's 7.69-billion-baht application to produce passenger cars and mini-trucks at Rojana Industrial Park in Ayutthaya was approved.
This project is an investment from Projen Group in China, which runs five manufacturing plants that will expand to Thailand for access to Southeast Asian markets.
Projen aims to produce Euro-5 emission-standard vehicles and use local components such as air conditioning systems, tyres and interior parts worth a combined value of 13.7 billion baht per year.
PTT Plc was granted BoI privileges for its 2.6-billion-baht science and technology park at the Eastern Economic Corridor (EEC) of Innovation in Rayong's Wang Chan district.
PTT will use its Wang Chan Valley to be a hub of education and research for new commercial innovation in automation, robotics, bioscience and aviation.
In total the BoI approved three projects worth a combined 21.77 billion baht.
The BoI reported 1,125 investment applications over the first nine months had a total value of 377.05 billion baht.
The number of applications for the period rose by 10%, while the value rose slightly by 0.84% from 373.91 billion baht in the same period last year.
Applications for the 12 targeted S-curve industries increased sharply by 69% from 525 projects, worth 290.48 billion baht, from January to September.
Applications for the EEC stood at 288 projects, up by 13%, with a combined value of 230.55 billion baht, a jump of 117%.