Bermaz Auto executive chairman Tan Sri Ben Yeoh said the timing will ultimately depend on when the local supply chain is ready.
THE third-generation Mazda CX-5 may have only just arrived in Malaysia as a fully imported model from Japan, but Bermaz is already preparing to assemble it locally, with production currently targeted to begin around the middle of 2027.
Speaking during a media Q&A following the Malaysian launch of the new CX-5, Bermaz Auto executive chairman Tan Sri Ben Yeoh said the timing will ultimately depend on when the local supply chain is ready.
“Production will probably start as soon as we are ready, maybe mid-next year, once the supply chain is fully prepared to support us,” he said.
As with the outgoing CX-5, local production will not be intended solely for Malaysia.
Yeoh explained that the existing model has also been produced for markets such as Thailand, Indonesia, the Philippines, Cambodia, and Laos, giving suppliers a larger regional production base to work with.
The same approach is planned for the third-generation model, with Asean demand helping make local component manufacturing more economically viable.
Local content for the new CX-5 is expected to reach around 60%, although Yeoh clarified that the figure refers to cost content rather than simply the proportion of parts made in Malaysia.
A minimum of 40% regional cost content is required to meet Asean Free Trade Area requirements for preferential trade treatment within the region, which is one of the reasons regional production scale remains important.
Yeoh also argued that localisation goes beyond simply reducing costs. Local assembly supports employment, investment in the domestic supplier network, and the transfer of technical knowledge as vehicles adopt newer technologies.
While local vendors will inevitably face a learning curve, he believes Malaysia’s supply chain is capable of supporting next-generation systems provided production volumes are large enough and manufacturers are prepared to commit the necessary investment alongside suppliers.
The arrival of the third-generation CX-5 will not immediately spell the end for the current locally assembled model either.
Bermaz still sees a market for the existing 2.0-litre CX-5, particularly among buyers who prefer the smaller-displacement engine and a more competitive price point, and the company plans to continue offering it with further updates.
Yeoh also pointed out that the newer CX-5 is slightly larger, allowing the two generations to occupy somewhat different positions in the range.
One version that will not continue is the 2.5-litre Turbo. Yeoh confirmed that the turbocharged variant will be dropped to make way for Mazda’s next generation of electrified products, signalling a gradual shift in the upper end of the CX-5 range rather than an immediate replacement of the existing model as a whole.
Mazda continues to pursue a multi-powertrain strategy rather than committing exclusively to battery EVs, with mild hybrids, plug-in hybrids, and fully electric models all forming part of its broader roadmap.
Which of those technologies eventually make their way to Malaysia will depend on factors including consumer demand, government policy, charging infrastructure, and taxation.