Mazda’s Strategy Embraces Electric Cars Slowly
Mazda, a major player in the automotive industry, has announced that it is taking a deliberate and slow approach to the electric vehicle market. Global CEO Masahiro Moro revealed this strategy in an interview with Automotive News, stating that the company plans to focus on hybrid models for the time being and gradually increase its electric offerings in the future.
Currently, electric models make up less than 1 percent of Mazda’s sales, with the MX-30 being the only electric car in their lineup. In contrast, hybrids account for about 20 percent of their sales. Despite this, Mazda has set a goal of having 25 to 40 percent of its sales come from electric cars by 2030.
Moro explained, “One of the big problems for us is the demand for electric cars is uncertain. In today’s market, the reality of electrification, particularly battery electric vehicles, is that the pace is not that high. Therefore, we may start a little slower in terms of acceleration. Not necessarily in terms of time, but the ramp-up.”
This intentional and deliberate approach has led to Mazda being described as an “intentional follower in electric vehicles” by their CEO. While some car companies have made significant investments in electric vehicles, Mazda has decided to take a cautious and deliberate approach.
Mazda’s decision to withdraw the MX-30 hybrid and electric SUV from the US and Australian markets after struggling with mediocre sales reflects the challenges that the company faces in this transitioning market. Despite Moro’s acknowledgment of the challenges ahead, he remains committed to meeting the needs and wants of consumers and expects electrification to play a significant role in the company’s future.
The company plans to introduce seven or eight electric cars to the market before the end of the decade, all of which will be developed by a dedicated division called ‘e-Mazda’. These models will be based on a dedicated, scalable platform, with various electric motor configurations, although specific details about battery sizes have not been disclosed.
Mazda’s commitment to electric vehicles will also see them collaborate with Toyota, who owns a minority stake in the company, to jointly develop automotive software and electronic systems. This collaboration is expected to reduce the total investment cost by up to 80 percent.
Moro emphasized the importance of collaboration in the rapidly changing automotive landscape, stating, “There are many things that an individual company cannot do alone. In the past, we might have said this is a competitive area, but now it is a collaborative area.”
Mazda’s strategy stands in contrast to other major car companies such as Ford and General Motors, who have recently announced a reduction in investment and production of electric models due to the intense competition in the market. While the approach may seem cautious to some, it reflects Mazda’s commitment to addressing the evolving needs of consumers while navigating the complexities of the electric vehicle transition.
As the automotive industry continues to evolve, Mazda’s deliberate and methodical approach to embracing electric vehicles sets the stage for its future in a rapidly changing market. With a commitment to collaboration and a focus on meeting consumer demands, the company aims to make a significant impact in the electric vehicle segment despite its cautious approach.
