Mazda Adjusts EV Plans, Focusing on Partnerships and Efficiency
Mazda is significantly adjusting its approach to electric vehicles (EVs), reducing its planned investment in electrification by approximately $3.3 billion. The company’s new strategy, dubbed the “Lean Asset Strategy,” emphasizes partnerships and a more cautious approach to EV development, according to a recent announcement.
This decision comes as the automotive industry experiences significant market fluctuations. Mazda’s first all-electric vehicle, the MX-30, faced limited success. To address these challenges, Mazda is opting to collaborate with other companies for EV development, which will allow the company to operate more efficiently and reduce costs.
Mazda President and CEO Masahiro Moro noted, “While a large amount of investment is required for batteries, demand is highly uncertain. We will implement careful and efficient investment while monitoring technical innovation. The environment surrounding electrification… has many uncertainties. Even under these circumstances, Mazda, as a small player in the industry, is pursuing our Lean Asset Strategy to minimize business risks and improve business efficiency.”
As part of the Lean Asset Strategy, Mazda is collaborating with companies like Changan and Toyota, to streamline its operations and minimize financial risks. This move aims to enhance Mazda’s flexibility as it navigates the transition to electric vehicles.
EZ-6 and Future Global EV Plans
As part of its short-term plan, Mazda will begin selling the EZ-6 and its crossover equivalent (likely called the CX-6e) in Europe. The EZ-6 is a vehicle developed in partnership with Changan.
Looking ahead to 2027, Mazda is developing its own bespoke EV, which will be built on a new in-house platform. This vehicle is planned as a global model and will likely be available in Europe and North America, with affordability as a key selling point. Mazda aims to assemble this new EV on the same production line as its internal combustion engine (ICE) models, avoiding the need for a dedicated and costly EV plant.
Continued Focus on Combustion Engine Development
Even amid the shift to EVs, Mazda is continuing the development of combustion engines. The company is working on a 2.5-liter Skyactiv Z four-cylinder engine, which will be introduced in the all-new CX-5 in 2027 and is designed to meet the latest emissions regulations.
This engine will likely be integrated into a hybrid system. Moreover, the fuel-saving technology found in the Skyactiv Z engine will also be incorporated into Mazda’s six-cylinder engines and its upcoming rotary unit to help it reduce emissions and improve efficiency. Mazda’s approach highlights its ongoing strategy of balancing innovation with financial prudence as it navigates the evolving automotive landscape.
