Mazda’s Electrification Plan: $11B in Investment
In November 2022, Japanese carmaker Mazda announced an investment of $10.6 billion in electric vehicles. Mazda investing in electric cars means increased sales targets for EV models, which make up for 40% of global sales by 2030, and could also involve the manufacturing of its own batteries.
Several carmakers around the world are making similar moves, trying to get ahead of more restrictive environmental regulations. Let’s take a closer look at Mazda’s plan to see what they have planned.
The Way Forward
In the announcement, Mazda explained its three-phase plan for electrifying its vehicles. The first EV models are expected to come out between 2025 and 2027, then full-scale EV production will start by 2028. Such an ambitious plan follows a solid upward trend in EV sales globally until 2030, according to Deloitte.
Apart from the multi-billion-dollar investment, Mazda is also working with other companies for the supply and joint development of EV units. Partnering companies include Envision AESC for electric batteries and Rohm Co. for electric components.
According to Deloitte’s forecast for the global EV market, sales should cross the $11 billion line by 2025, topping $31 billion in 2030. Mazda expects to reap JPY4.5 trillion in EV sales by 2026, which would be a 45% increase from 2022 figures.
Mazda might outsource electric parts initially. However, according to Akira Koga, Mazda’s senior managing executive officer, part of the investment will be dedicated to research and development of parts.
What to Expect
Mazda CEO Akira Marumoto summarised the company’s approach to this market, saying “We believe that a multi-solution approach will be effective.” In fact, the company’s engineers are already developing a more efficient internal combustion engine and a brand new hybrid system.
Mazda has produced hybrid engines before, like the MX-30 crossover. However, it has never developed an all-electric vehicle. While the first EVs haven’t yet reached the roads, Mazda is investing in its plug-in hybrid electric vehicle (PHEV), such as the MX-30 e-Skyactiv R-EV. This model comes with a 17.8KWh battery with a range of 85km, which is quite reasonable for daily use.
This model also has other environmentally friendly features, like a 1 MW solar power system, high-precision painting, and paints that can resist extremely low temperatures. Additionally, it uses recycled material on fabrics and cork details. Those features combined represent a CO2 reduction between 34 and 37 percent.
Japanese carmakers took a while to join the all-electric trend. Instead, they invested mostly in mass production of hybrid models, a pattern that lasted for 20 years. Mazda’s investment aims to catch up with this global trend to help them compete in the global EV market.
Regardless, current PHEV models, such as the MX-30 e-Skyactiv, already bring pretty promising features, such as a solar panel. So, while a full-EV Mazda is yet to come, the carmaker has already proven its capabilities of developing green technology.