Mazda is in No Rush to Propel Electric Vehicles
Taking on the electrification challenge can be tricky, especially for a smaller automaker like Mazda. Despite the hurdles and the risk of falling behind with less efficient gas and diesel vehicles, the Japanese automaker remains committed to the electric vehicle (EV) game. Mazda CEO Masahiro Moro recently revealed that the company is positioning itself as an “intentional follower” in the EV arena, citing uncertain demand for EVs as the driving force behind this strategic choice. Mazda has ambitious plans to introduce a new family of EVs designed in-house on a fresh platform, with the newly established e-Mazda division tasked with bringing these visions to life.
“One of the big issues for us is demand is uncertain. In the current market, the reality for electrification, in particular for battery EVs, is the pace is not that high. So we may start a little slower in terms of the ramp-up. Not necessarily in terms of timing, but the ramp-up.”
-Mazda CEO, Masahiro Moro
However, e-Mazda is a recent addition, coming into existence in November (2023). Moro outlines the division’s focus on crafting EVs that are not only lighter but also more affordable. Yet, he emphasizes that compact or smaller EVs won’t be on the drawing board due to the prohibitive costs associated with batteries, making them economically unviable. The anticipated debut of e-Mazda’s inaugural EV may premiere between 2025 and 2027, with production set to kick off in Japan. US production in 2028 is even possible to tap into clean vehicle tax credits.
Mazda is turning to Toyota for technological assistance to fund the development of this new EV platform. Starting in 2026, Mazda plans to adopt “almost wholesale” electronics and software from Toyota, which Moro believes will result in substantial cost savings—estimated at 70 to 80 percent of the total investment costs compared to going solo. This collaboration strategy mirrors similar partnerships in the industry, such as Mitsubishi utilizing Nissan systems and Lotus dipping into Volvo’s parts bin.
“There are many things an individual company can’t do alone. In the past, we might have said this is a competitive area. But now, it is a collaborative area.”
-Moro
In the interim, expect a surge of hybrid offerings from Mazda, particularly in the US market. The recently introduced CX-90 has seen half its North American sales from the plug-in hybrid variant. Furthermore, a plug-in hybrid version of the smaller CX-50 is in development. The compact Mazda will be manufactured in Alabama and features a Toyota hybrid system. Looking ahead, the CX-70 will join the lineup next year (2024), filling the gap between the CX-90 and CX-50 and may offer a plug-in variant as well. Mazda is gearing up for an electrifying journey!
“Between now and 2030 is the dawn period of electrification—we have to go over this bumpy ride. We just have to deal with the consumer’s needs and wants. Right now, the customer is looking for alternative solutions—other than battery EVs.”
-Moro
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Photo Source/ Copyright: Mazda Newsroom