When it comes to EV manufacturing, Thailand is where the rubber meets the road. Japanese automaker Mazda Corporation announced that it will invest $150 million in Thailand to produce electric compact sports utility vehicles, a sure sign of confidence in the Kingdom.

Mazda’s commitment to building cars in the Kingdom comes as the global auto industry is in the midst of a shakeup and uncertainty driven by the shift to electric vehicles (EVs). Auto sales have been slumping in several markets. Thailand has long been known as “the Detroit of Southeast Asia” because of its regional leadership in vehicle manufacturing. The Kingdom is an export base for some of the world's top carmakers, including Toyota, Honda and Ford.

Today, Thailand is occupying the industry’s middle lane, accelerating EV production as it aims for the future while still churning out traditional combustion cars and trucks to meet the demand for those.

Mazda’s “investment is to support domestic sales and exports to Japan and other countries, such as ASEAN (Association of Southeast Asian Nations) countries, targeting a production of 100,000 units per year,” the Board of Investment (BoI) said, quoting Mazda President Moro Masahiro.

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.

Mazda’s business plan for Thailand is future focused. Mazda said it will expand its EV product line in the Kingdom to appeal to a wider range of customers. From 2025 to 2027, the company said it will introduce five models: two battery EVs, one plug-in hybrid and two hybrids.

“Mazda has built a strong business foundation in Thailand over the past 70 years with the support of many people, including the Thai government,” Masahiro said.