Mazda Motor Corp. is cutting its planned investment in electrification by ¥500 billion ($3.3 billion) through 2030 as the Japanese automaker adopts a more cautious approach to the EV transition.
The Hiroshima-based carmaker unveiled its “Lean Asset Strategy” that will reduce the total investment to ¥1.5 trillion ($10 billion) from an initially planned ¥2 trillion when accounting for inflation. The company will halve its battery investments through partnerships rather than developing all battery technology in-house.
Mazda’s strategy reflects growing industry skepticism about the pace of EV adoption, with the company describing the period through 2030 as merely the “dawn of electrification.”
The automaker plans to manufacture both EVs and combustion engine vehicles on the same production lines, claiming this approach will cut initial capital costs by 85% compared to building dedicated EV factories. The company will deploy what it calls “Rootless Production Equipment” using automated guided vehicles to enable the mixed production.
For its in-house EV platform scheduled to launch in 2027, Mazda expects to reduce development investment by 40% and engineering hours by 50% compared to traditional vehicle development.
The company also announced a new engine called SKYACTIV-Z that will comply with stringent emissions regulations in Europe and the U.S., to be introduced in the next CX-5 model by late 2027.
