Japanese legacy automaker Mazda has been slow to join the electric vehicle transition compared to its global competitors. Despite that, it still plans to employ a “go-slow” electrification strategy due to demand concerns.
As part of this strategy, Mazda aims to launch 7 to 8 new electric vehicle models by 2030.
Electrification strategy
Mazda Chief Executive Masahiro Moro disclosed the automaker’s electrification strategy in an exclusive interview with Automotive News on December 6.
As mentioned, Mazda aims to add 7 to 8 new electric vehicles to its lineup by the end of the decade. According to the CEO, the company decided to decelerate its battery-electric vehicle (BEV) rollout even longer than originally intended.
The slowdown is apparently crucial for the company due to its various issues in electrification and the entire EV market.
In that sense, Mazda aims to hit 600,000 vehicle sales in North America in 2025. It indicates a notable 100,000-unit increase from the prior guidance. Of that total, the CEO expects the US to account for 450,000 units. However, the target focuses more on internal combustion engine-powered (ICE) in the next few years.
In the same year, the automaker set a global sales target of 1.6 million vehicles. It indicates an 800,000-unit drop from the previous guidance of about 1.8 million vehicles, partly due to weaker sales in the Chinese market. Teslarati noted that Mazda aims to consolidate its operations in the world’s largest auto market with similar issues for Europe and Japan.
Mazda expects EVs to account for only 25%-40% of its overall vehicle sales by 2030.
Market concerns
CEO Moro admitted that demand uncertainty is one of the top concerns that impedes the company from accelerating its shift towards all-electric vehicle technology.
The Mazda boss even referred to the automaker as a mere “international follower,” unlike its competitors aiming to advance as an EV leader.
“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. That is why I call us an intentional follower on EVs.”
Mazda Chief Executive Masahiro Moro
Hybrid tech focus
ICE-powered models, even those electrified, undoubtedly drive Mazda’s sales growth. CEO Moro noted that sales in the US market can hit 400,000 units in CY 2024.
In fact, its US sales surged 21% to 323,836 vehicles through November. However, EVs only accounted for 1.9% of its overall US sales.
On the other hand, Mazda’s EV sales only contributed 1% of its global sales of 931,000 units through September 2023. It is unsurprising, considering the automaker only has one compliance electric car, the MX-30 and the plug-in hybrid CX-90.
Mazda has yet to announce more precise details about the planned EV lineup, including its technical specs, potential production location, and timeline.
