Mazda may Thai up baby

Mazda Australia is investigating the possibility of sourcing future Mazda2s out of Thailand, where it now gets the BT-50 utility.

The move could slash prices for the entry model, which starts at $16,390 for the three-door. Despite Mazda Motor Corp managing executive officer, Yuji Nakamine, confirming Australian-bound 2s will come from Thailand within a year, Mazda Australia remains non-committal.

Mazda Australia spokesman, Steve Maciver, says Japan will remain the source for Australian-bound 2s at present. "Thailand is certainly on the table but there have been no decisions," he says. "At this stage Mazda2 production in Thailand is confirmed only for South-East Asian countries."

With cheap Chinese passenger car imports starting soon and Proton's aggressively priced 1.6-litre S16 sedan due in showrooms next month, Mazda needs a fightback strategy to keep its popular entry model on the boil. Production of the Mazda2 hatch - with a revised Mazda3-style grille and tail-lights - has just started at the $500 million AutoAlliance Thailand factory at Rayong.

The AAT plant also builds the Ford Fiesta, which shares Mazda2 underpinnings. Ford Australia has already confirmed it will start importing the Fiesta from Thailand next year to take advantage of the Free Trade Agreement between Australia and Thailand. Meanwhile, Mazda Australia has brought forward the 2010 import duty drop, saving new car buyers up to $2000.

From January 1, the Federal Government will reduce duty on imported passenger cars from 10 to 5 per cent. The duty drop means new car buyers will save about 3 per cent on new cars. The average price of a Mazda3 will drop $930 while RX-8 buyers will save more than $2000. Four-wheel drive and light commercial vehicles already get a 5 per cent duty.

Imports from Thailand remain unaffected by the duty change. Apart from Mazda, Honda imports the Jazz, Civic sedan, Accord VTi and V6 and CR-V from Thailand.