Mazda Adjusts EV Strategy
Mazda is updating its electric vehicle strategy for the coming years, with some notable shifts in its approach. The automaker intends to decrease its investment in electric vehicles while still planning to introduce new models.
Mazda will adopt what it terms a “Lean Asset Strategy” for EVs. This involves a reliance on existing partnerships and a reduction in capital investment. The company plans to utilize common assembly lines for both internal combustion engine (ICE) and EV models in the coming years.
Mazda has been a notable holdout in the mass-market EV space in the United States. The company recently launched an electric sedan in China and is planning another, more globally-focused EV for 2027, which will be built in Japan.
Existing EV offerings from Mazda in the U.S. have been somewhat limited. The automaker launched and then withdrew its short-range MX-30 model from the U.S. market just a couple of years ago. This experiment led to questions about Mazda’s long-term EV plans, particularly as many of its Japanese competitors were rolling out mass-market EVs.
Those hoping for an electric MX-5 may need to be patient, as Mazda’s latest strategy doesn’t put all its focus on battery-electric models.
Lean Asset Strategy
This month, Mazda revealed its “Lean Asset Strategy,” outlining how the automaker will use existing partnerships for its electric models. The company plans to scale back its prior EV investment plans, first announced in 2022, from $13.3 billion to $10 billion. Mazda also intends to reduce development costs for its planned EV models while using existing plants instead of building separate ones.
By using the same production lines for both ICE and BEV models—a strategy becoming common in the industry—Mazda estimates it will reduce initial capital investment by around 85%.
Overall, the automaker takes a conservative view of EV adoption in the next five years.
“Mazda considers the period up to 2030 to be the ‘dawn of electrification,’ and under the 2030 Management Policy, the company will promote electrification with multi-solution to flexibly respond to diversifying customer needs and environmental regulations,” the automaker stated.
The good news is there’s a new EV on the way. It is expected to be an SUV, using a platform developed in-house and built in Japan for export. This vehicle will join the 6e electric sedan, which will go on sale in Europe later this year, produced with automaker Changan in China.
“For the battery EV to be launched in 2027, the company expects to reduce development investment by 40% and development man-hours by 50% compared to conventional development through collaboration and partnership,” the automaker said.
Future Powertrains
In laying out its revised EV strategy, Mazda says it will continue to develop its internal-combustion engines in the coming years, including the debut of its SkyActiv-Z engine. This new powertrain, combined with Mazda’s proprietary hybrid system, is scheduled to arrive in 2027 under the hood of the CX-5. The gains in combustion efficiency achieved by the SkyActiv-Z will also be applied to inline-six variants, Mazda hinted, and will eventually find its way into a rotary engine.
So, Mazda is not moving away from its internal-combustion technology or rotary engines anytime soon, with plans for additional development.
However, a reduction in the variety of engines is expected.
“Including SkyActiv-Z, the number of engine units will be reduced to less than half, and the control software will be consolidated to two-thirds in the future,” the automaker noted.
Mazda’s overall strategy seems to carefully consider the actual market share of battery-electric vehicles in different regions, as well as the automaker’s own resources and core audience.
These factors don’t necessarily indicate a rapid shift to an EV-focused lineup but suggest some limited offerings in EV-friendly regions like China and Western Europe.
Mazda’s battery-electric offerings in the U.S. are expected to increase by the end of the decade. However, don’t expect to see an electric version of every Mazda model on sale by 2030.
