Mazda delays in-house EV launch to 2029 and cuts investment

Wednesday 13 - 15:37

By: Dakir Madiha

Mazda delays in-house EV launch to 2029 and cuts investment

Mazda has postponed the launch of its first dedicated battery electric vehicle to 2029 at the earliest and sharply reduced its electrification spending, signaling a strategic shift toward hybrid models as near-term demand for full electric vehicles weakens in several markets.

The Japanese automaker confirmed the decision alongside its latest annual results. The company reduced its planned electrification investment to about 1.2 trillion yen by 2030, down from an earlier target of roughly 2 trillion yen. Management also revised down its expected share of fully electric vehicles in global sales to around 15 percent by 2030, compared with a previous forecast of up to 40 percent.

Chief executive Masahiro Moro said the revision reflects changing regulatory and market conditions, including easing fuel economy rules in key regions, weaker incentives for electric vehicle purchases, higher US tariffs, and slower consumer adoption in several markets. He said the company had taken a cautious approach from the outset and avoided costly restructuring linked to premature EV scaling seen at some rivals.

While internal EV development slows, Mazda is increasing reliance on vehicles produced through its joint venture with Changan Automobile in China. Models such as the CX-6e and Mazda 6e are already being sold in markets including Europe and Australia, based on Chinese EV platforms. Mazda is positioning its China operations as a global export hub for electric vehicles targeting Europe, Australia, and Southeast Asia.

The company is shifting capital toward hybrid and combustion technologies. It plans to launch three new hybrid models between 2028 and 2030, alongside a hybrid version of the redesigned CX-5 expected in 2027. Mazda is also developing a new Skyactiv-Z engine as part of its transition strategy. The group continues preparations for a future in-house EV production site in Hofu, in western Japan, and a nearby battery facility in Iwakuni.

Mazda reported a 72 percent decline in operating profit for the latest fiscal year but expects a strong rebound in the current year, supported by tariff adjustments and the rollout of new models. The company maintains that its long-term electrification roadmap remains intact but paced more conservatively than earlier projections.