Mazda Makes Plans for a New EV By 2025

The Mazda MX-30 crossover, the Japanese brand’s initial swing into battery-electric production models, was less successful than expected by its fans.

Unfortunately, the MX-30 only lasted for two model years, 2022 and 2023, in the US due to its limited availability and subpar range rating of 100 miles. The car was only available to California buyers, leading many to consider it compliant. As a result, sales figures could have been more impressive.

According to the latest figures, Mazda sold only 100 models of the MX-30s in the United States during the first eight months of 2023. The figures represent a 69 percent decline from the previous year (2022). The lack of popularity of the car, due to its limited availability and subpar range rating, has had a significant impact on the sales numbers.

Although the Mazda MX-30 will no longer be available in the US after the 2023 model year, the automaker will sell the EV in other markets, such as Japan and Europe. In said countries, the compact SUV features an R-EV range-extender variant powered by a Wankel rotary generator. However, on the bright side, Mazda has not abandoned the idea of selling EVs in the US.

According to recent reports, the Japanese automaker plans to launch new EVs in the country in early 2025 to take advantage of the growing EV market. However, given the current market context, the Japanese automaker’s strategy to achieve this sustainable goal is where things get pretty interesting.

Mazda plans to build its new EVs on platforms shared with existing gasoline-powered vehicles. While cost is a significant factor behind this decision, how the market will respond to Mazda’s EVs remains to be seen, especially when other automakers such as GM and Volkswagen are moving towards dedicated EV architectures.

The report also mentions that Mazda’s upcoming EVs will come to life at its Hofu plant in Yamaguchi prefecture, Japan. The facility can produce gasoline, hybrid, and electric vehicles on the same line, which benefits cost savings.

One downside of Mazda’s decision to build its new EVs on platforms shared with gasoline-powered vehicles is that the electric cars will not be eligible for the federal EV tax credit of up to $7,500. US regulations state that an automaker’s final EV assembly must be performed in North America to qualify for the exemption.

However, Mazda has learned a valuable lesson from the poor reception of the MX-30 in the US: selling small EVs is not profitable in the country. While the automaker has not revealed the type of vehicles it plans to launch in the US, SUVs are the safest bet.

“It’s hard to make money by making small EVs given the high costs of producing automobiles. We are looking at a segment that will appeal to would-be EV buyers.”

 – Mazda Chief Executive Masahiro Moro

 

While Mazda has yet to disclose its plans for any specific EV models, an electric version of the MX-5 sports car may not be a priority, given the automaker’s focus on SUVs for the US market.

Mazda’s most significant market is the US, accounting for around 30 percent of its global sales. The company aims for EVs to represent 25-40 percent of its global sales by 2030, which is an ambitious target.

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Photo Source/ Copyright: Mazda Newsroom