- Mazda is cutting its 1.5 trillion yen electrification plan by a third but says it’s still on track to launch a new EV in 2027.
- The manufacturer will rely more on partnerships with other companies to help it run leaner and more efficiently.
- This move is meant to make Mazda more flexible in the face of market uncertainties.
Mazda’s first electric vehicle, the MX-30, was a flop. Its latest one, the EZ-6, is really a Changan underneath. It’s pretty clear that Mazda is up against the wall when it comes to electrification; after all, it’s one of the last few small, independent car companies left, and it doesn’t have the massive capital to compete with the likes of BYD or Tesla. So Mazda is playing it safe by outsourcing EV development to other companies, thus reducing costs.
The manufacturer announced its backtracking on its previous EV plans, cutting the equivalent of around $3.36 billion—about a third of its planned electrification pledge—until 2030. Mazda’s collaborations with the aforementioned Changan, Toyota and other brands made this possible as part of the company’s new “Lean Asset Strategy.” This initiative aims to cut costs, boost efficiency and maximize the automaker’s flexibility by leveraging partnerships.
Mazda considers the period up to 2030 “the dawn of electrification,” an age of transition from one means of propulsion (combustion) to another (electricity). This view is shaping Mazda’s current strategy, and it’s the reason why EV plans remain lean for now.
“While a large amount of investment is required for batteries, demand is highly uncertain,” said Mazda President and CEO Masahiro Moro. “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.”
Photo by: Mazda
Mazda had a good year in 2024 but still only sold 1.2 million vehicles. It can’t rely on the same kind of revenue stream as larger companies like Toyota, Volkswagen or Stellantis. It has also often bucked industrywide trends and gone its own way, like when it introduced its Skyactiv line of products that still relied on naturally aspirated engines when the industry had largely shifted to turbocharging. But being different is part of Mazda’s appeal, and it’s largely worked well for the brand. This EV strategy lines up with the company’s modus operandi.
The new short-term plan is to start selling the EZ-6 and its crossover equivalent (likely called the CX-6e) in Europe, even though these vehicles will incur tariffs because they are built in China. Mazda is working on its own bespoke EV, which will debut in 2027 along with a new in-house-developed platform.
The new EV will be a crossover made in Japan and it’s being designed as a global model, so it will likely be made available in Europe and North America. Affordability will be the key selling point for this upcoming EV, and Mazda wants to assemble it on the same production line as its ICE models, thus eliminating the need for a dedicated EV plant that would be pricey to build and run.
Mazda is also continuing the development of combustion engines. The latest is the 2.5-liter Skyactiv Z four-cylinder, which will debut in the all-new CX-5 coming in 2027 and comply with the latest emissions regulations. It will likely be part of a hybrid system. The fuel-saving technology in the Skyactiv Z engine will also find its way into Mazda’s six-cylinder engines as well as its upcoming rotary unit to help the latter cut emissions and improve efficiency.
