Mazda CX-3 to be Manufactured in Thailand to meet high demand

Kuala Lumpur: Mazda CX-3 has become a blooming bud for the company, the car has become so popular that the Japanese carmaker is running out of capacity to meet the heavy demand. Well, consider as a positive side effect to the company's meteoric rise. Currently, the car is being built at Mazda's Hiroshima plant, but according to a report by Nikkei Asian Review, the Hiroshima plant cannot produce the required number of units. Hence, the company is forced to push out CX-3's production to another manufacturing unit at the AutoAlliance Thailand plant in Rayong.

Read our earlier comparison: Mazda CX-3 vs Honda HR-V

This big move is expected to take place early as this year because CX-5 is already facing a huge demand, which will force the Hiroshima and Hofu plant to work at their 95% capacity. Among this much tension, the company cannot afford to produce CX-3 is the same plant. Thus, Mazda has to devise a new strategy for its CX-3, which is going to face a similar demand in this fiscal year.

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Masamichi Kogai, President at Mazda previously said during the launch of the B-segment crossover in February that there were no plans to produce the car overseas. However, it might happen soon.

Mazda's new strategy might work, as the company has an inheritance of production equipment from Ford – Mazda’s partnership in the AutoAlliance joint venture, which means there is some extra room at the Thai factory. Along with that Rayong will import CKD kits from Japan to be assembled at this plant, with output projected to reach as much as several thousand units a month. If this strategy comes to fruition, then CX-3 will join the league of Mazda 2, Ford Fiesta, Ranger, Everest and BT-50 pick-up twins to be manufactured at the AutoAlliance Thailand plant.

Japan's is facing a huge shortage of capacity at the production facilities, as the Japanese carmakers are doing great around the globe. This alleviation of under capacity will surely be placated if the production sites will move to Thailand, this will also help reduce risks associated with currency exchanges through exports. Apart from this, it will also enable Mazda to save heavy tariff amounts which are imposed by Thailand on imported vehicles.

Read Also: Mazda CX-3 Crash Test: Scores a four-star rating

From the past few years, Subaru and Toyota have been working very hard to optimise and consolidate their production facilities. These carmakers are trying their best to establish plants closer to the evolving markets to dodge the heavy duties applied on them.

Mazda CX-3 is all set to arrive in Malaysia, the car will make its local introduction somewhere around November this year. Mazda CX-3 will be a high spec B-segment SUV, reportedly having a 2.0 litre SkyActiv-G petrol engine churning out 150 hp and 204 Nm torque with a six-speed SkyActiv-Drive automatic transmission and a choice of either front- or all-wheel drive. Mazda CX-3 will come under RM130K, giving a tough competition to Renault Captur and Honda HR-V.

Read our earlier comparison: Mazda CX-3 vs Renault Captur