Mazda Hits The Brakes On EVs, Doubles Down On Hybrids

Mazda is shifting to hybrids as more automakers pull back on their EV plans.

Mazda CX-50

Photo by: Mazda

Jeff Perez

By: Jeff Perez

May 13, at 2:00pm ET

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the breakdown

Mazda is delaying its first true EV again, with a launch now expected no earlier than 2029.
The company is cutting EV spending nearly in half and lowering its long-term EV sales targets.
Instead of going all-in on electric vehicles, Mazda is focusing more on hybrids like the CX-50 Hybrid and upcoming CX-5 Hybrid.

Mazda has been slower than most when it comes to electrification—but that might actually work in its favor. While other brands are pulling back from aggressive EV pushes after losing huge amounts of money, Mazda is able to shift to hybrid production without taking much of a hit.

According to Automotive News, Mazda is delaying its EV rollout—again. The company originally planned to launch its first EV in 2027, then pushed that timeline to 2028. Now, it looks like Mazda’s first true battery-electric vehicle won’t arrive until at least 2029.

During a May 12 earnings call, Mazda CEO Masahiro Moro said the company made the decision before fully committing to EV production: "For battery EVs, we were always careful." He also pointed out that Mazda won’t have to write off factories or equipment because the company hadn’t heavily invested in EV production yet.

2023 Mazda MX-30 e-Skyactiv R-EV

Mazda MX-30

Mazda's (New) EV Strategy

As part of the shift, Mazda is cutting its EV investment nearly in half—from about $12.5 billion down to $7.5 billion through 2030.

The automaker now expects EVs to make up around 15 percent of its total sales by the end of the decade, with annual production targets between 200,000 and 250,000 units. That’s a big drop from its previous goal of 25 to 40 percent EV sales.

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Instead, Mazda is doubling down on hybrids, where it sees stronger demand and better profitability. The company already sells the CX-50 Hybrid in the US using Toyota’s hybrid system, and it plans to introduce its own hybrid version of the CX-5. Mazda also recently confirmed the return of the smaller CX-3, which will likely get a hybrid powertrain too.

Motor1's Take: Mazda being cautious with EVs suddenly doesn’t look like such a bad strategy. After the forgettable MX-30, the company now seems more focused on building out a practical hybrid lineup before going all-in on fully electric vehicles.

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Source: Automotive News

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