Mazda Motor plans to invest THB1bn (US$33m) to improve the manufacturing operations at its Auto Alliance Thailand (AAT) joint venture next year after it discontinues production of the current BT-50 pickup truck.
Mazda owns 50% of the joint venture with Ford owning the remainder which gives each partner an annual vehicle production capacity of 135,000 units at the Rayong facility.
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By GlobalDataMazda decided to discontinue its pickup truck partnership with Ford several years ago with production of the last joint model expected to be discontinued this year or in early 2020.
In 2016 the company signed an agreement to source its next generation BT-50 from Isuzu Motors which launched its new generation D-Max pickup truck last October.
The launch date of the new D-Max-based Mazda pickup truck has not been released although the model is likely to be unveiled at the next Bangkok International Motor Show in March 2020.
It will be sold domestically and also exported to numerous markets worldwide.
Mazda will focus on producing the 2, 3 and CX-3 models at the AAT plant and has budgeted to upgrade the jig and die tooling system at the facility in 2020.
Chanchai Trakarnudomsuk, president of Mazda's local distributor Mazda Sales Thailand, said he expected the brand's total sales in Thailand to decline by less than 8% to 65,000 units in 2019 after four years of consecutive growth.
Sales in the first 10 months of the year were down by over 13% at 49,700 units.
Chanchai was also upbeat about the prospects for the Thai market next year, expecting government stimulus measures will offset negative external factors such as trade wars and the strong baht.
He forecast overall sales to exceed 1m in 2020, with 900,000 his worst case scenario.
A further update on the company's 2020 business plan will be given in January which would include the launch of two new models.