Mazda’s secret plan to make cars for Australia in Indonesia

A select number of Mazda models sold in Australia could soon be manufactured in Indonesia, according to a senior Indonesian politician – but Mazda is remaining tight-lipped on the reported plans.

The Indonesian Minister of Industry, Agus Gumiwang Kartasasmita, met with senior executives from Mazda in Tokyo this week, with the Japanese car-maker reportedly confirming its investment in Indonesia would begin from 2024.

"Together with Mazda, we discussed the company's investment commitment which is planned to begin in 2024," the minister said in a media statement.

"The Ministry of Industry expresses its appreciation for Mazda's investment plan in Indonesia. We want to confirm Mazda's production plan in Indonesia, as well as encourage Mazda to make Indonesia a production base in the [southeast Asia] and Australia regions."

Currently, Australia imports the Mazda 2, CX-3, and BT-50 ute from Thailand, however the Japanese-sourced CX-5 – and its popularity in Australia – was also specifically mentioned in the media release from the minister's office.

But despite the Minister of Industry's claims that Mazda has already confirmed it will be moving some vehicle production to Indonesia, the Japanese car company has declined to comment on the plans.

MORE: Indonesia aims to export more cars to Australia

"It is true that Mr Tanaka, Managing Executive Officer of Mazda, met with Indonesia's Minister of Industry and other officials from the ministry in Tokyo on June 5, 2023," a spokesperson for Mazda Australia told Drive.

"We have nothing to share with you about the contents of the meeting. We would also like to refrain from making any comments on the content of the press release issued by the Indonesian Ministry of Industry."

In 2019, Indonesia said it hoped to increase vehicle exports to Australia, on the back of a free-trade deal between the two countries.

It is understood the minister also met with Isuzu officials in Tokyo this week, according to overseas reports, and confirmed one of the company's Thai factories would also be moving to Indonesia.

However, despite Isuzu building both the D-Max ute and its non-identical twin, the Mazda BT-50 ute in Thailand, it's understood the Indonesian Isuzu facility may build UD-branded heavy trucks.

A spokesperson for Isuzu Ute Australia – the business responsible for the D-Max ute and MU-X SUV – told Drive they were unaware of any plans to move production of the company's Australian-delivered models.

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Both the Mazda 2 and Mazda CX-3 appear to be prime candidates for Mazda's Indonesian production, as unlike the BT-50, they are not joint ventures with another car maker.

The two smaller vehicles approaching the end of their model life cycles – however both models have just received styling updates, suggesting they will likely remain on sale for a handful of years to come.

Indonesia – the nation to the north of Australia with a population of approximately 282 million people – is also pushing to become an electric-vehicle hub in the coming years.

"We hope Mazda can consider the Mazda MX-30 [electric vehicle] product as one of the line-ups produced in Indonesia," the Minister of Industry said in a media statement.