Following the MX-30 setback, Mazda plans to reintroduce electric vehicles to the US market by 2025.

Title: Mazda Plans to Reintroduce Electric Vehicles to the US Market by 2025

Introduction

Mazda, a renowned Japanese automaker, is making efforts to reenter the electric vehicle (EV) market in the United States. Despite the lackluster performance of their previous EV model, the MX-30 crossover, Mazda is determined to try again. According to Asian Nikkeis, the brand is planning to introduce new electric vehicles to the US market as early as 2025. While there is no official announcement regarding the specific models, sources suggest that Mazda will focus on SUVs built on existing car platforms. This move comes as Mazda seeks to attract potential buyers of electric vehicles in the US market, which holds great potential for the brand.

A Challenging Journey for Mazda’s Electric Vehicles

The MX-30 crossover, Mazda’s first attempt at an electric vehicle in the US market, faced significant challenges. From January to August 2023, Mazda only managed to sell 100 MX-30s, experiencing a 69% decline compared to the previous year. Despite these disappointing results, Mazda remains undeterred from exploring the EV market further.

Mazda’s CEO, Masahiro Moro, acknowledged the difficulties associated with producing small electric vehicles at a profitable margin due to high production costs. Nonetheless, the brand remains determined to target potential EV buyers. This indicates Mazda’s recognition of the importance of entering the EV segment and appealing to a wider consumer base.

Focus on SUVs

To cater to the preferences of potential EV buyers in the US, Mazda intends to prioritize SUVs in their lineup of electric vehicles. Recognizing the growing popularity of SUVs in the market, Mazda believes that this segment will help attract interested consumers. By leveraging their existing car platforms, Mazda aims to develop electric SUVs that provide a balance between cost and desirability.

Missing Out on Federal Tax Credits

Despite Mazda’s plans to reintroduce electric vehicles in the US market, their upcoming EVs will not be eligible for the $7,500 federal tax credits offered to EV owners. Under the new Tax Reduction Act rules, vehicles must undergo final assembly in North America to qualify for this tax credit. However, Mazda will manufacture their new electric vehicles at their plant in Hofu, Japan. This lack of tax incentive may pose a challenge for Mazda’s future sales compared to their competitors, whose customers can benefit from tax breaks.

Opting for Existing Car Platforms

In an interesting departure from the strategy adopted by many rivals in the EV market, Mazda plans to build their new electric vehicles on existing gasoline car platforms instead of developing dedicated electric platforms. Brands like GM and Volkswagen have transitioned to exclusive electric platforms, which offer advantages such as reduced weight, improved interior dimensions, and more innovative and aerodynamic designs. Mazda’s decision to stick to existing car platforms may be driven by cost considerations. However, it remains to be seen how this approach will affect the performance and appeal of their electric vehicles compared to competitors.

Ambitious Goals for Electric Vehicle Sales

Electric vehicle sales represented just 1% of Mazda’s global sales last year. However, the brand aims to significantly increase this share, with a target of making EV sales account for at least 25% of their global sales. The United States, as Mazda’s largest single market with nearly 30% of its global sales, will play a crucial role in achieving this goal. To succeed in the US market, Mazda needs to address the requirements of American consumers, including offering electric vehicles with a range that exceeds the previous MX-30’s limited 100-mile range.

Conclusion

Mazda’s determination to reenter the electric vehicle market in the US demonstrates the brand’s commitment to innovation and meeting the evolving needs of consumers. By focusing on SUVs built on existing car platforms, Mazda aims to strike a balance between affordability and desirability. While they may miss out on federal tax credits and face competition from rivals with dedicated electric platforms, Mazda’s return to the EV market presents an opportunity for growth and could contribute to their ambitious global sales targets.