Mazda to produce diesel version of for latest Thai eco- project 30-Oct-2014 12:19 GMT News Investments

Mazda's THB9.73-billion eco-car investment in Thailand is moving to the next phase.

Mazda Thailand is planning to add production of a diesel version of its Mazda2 subcompact at its plants for the second phase of the government-supported eco-car project, according to the Bangkok Post. Mazda is expected to use its new 1.5-litre SKYACTIV diesel engine for the model, which is capable of producing 105 HP of maximum power, mated to a 6-speed automatic transmission. The model is reportedly capable of achieving a claimed fuel efficiency of 26.4 kilometres per litre (km/l), higher than the 23.3 km/l requirement of the eco-car programme. The model is expected to be priced in the range of THB600,000-750,000 (USD18,449-23,062). Mazda will launch the gasoline (petrol) version of the Mazda2 after the diesel model, sales of which will commence in Thailand in January 2015.

Significance: Mazda's THB9.73-billion eco-car investment in Thailand is moving to the next phase. The automaker is aiming to produce about 158,000 eco- and 200,000 automotive parts each year in Thailand as part of the programme. Mazda began production of its all-new Mazda2 at its Rayong plant last month. Commenting on the relatively higher price tags of diesel models, and the resulting relatively low demand for such vehicles in the country, the automaker noted that economies of scales would be raised by exporting the eco-car to markets such as Australia and Europe in future. Mazda will be the first automaker to begin work on the latest eco-car programme, with major automakers maintaining a generally cautious approach owing to the current sluggish market conditions. IHS Automotive's light-vehicle production forecasts expect Thai output of the Mazda2 to stand at 27,000 units in 2014, down from 28,000 units in 2013, primarily on the back of the changeover of this model as well as the ongoing political uncertainty in Thailand. However, production is expected to improve to around 42,000 units in 2015, with average annual production volumes predicted at 57,300 units in the medium and long term. The latest model will be exported to new markets in the Middle East and Africa starting from 2015. As well as the Rayong plant in Thailand, Mazda's Hofu facility in Japan and the Salamanca plant in Mexico produce the latest model.

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