Mazda joins EV hype, invests additional $10.6 billion

Mazda has revealed it will invest over $10 billion towards EV development as part of its new business strategy.

The Japan-based automaker joins many of its peers in moving away from gas-powered vehicles, although its outlook is noticeably less rosy than companies like General Motors. Consequently, rather than phasing out the internal combustion engine, Mazda will continue to sell ICE vehicles throughout the decade, but aims to supplement 40% of their sales with EVs by 2030, an increase of 5% from their previous goal. This new cautionary optimism for zero-emission cars seems to be shared by the other Japanese manufacturers who have also announced long-term EV transition plans.

While anticipations of changing demand have driven many automakers to revise their strategies, the change in sentiment from Japanese brands is due in part to North American politics. States such as California and New York have set ambitious carbon neutrality goals, which will cease the sale of gas vehicles within the next two decades. Meanwhile, environmental policy has increased incentives for green energy, with bills such as the Inflation Reduction Act promising generous tax credits to EV manufacturers. Although Mazda won’t be able to fully take advantage of these benefits until they manufacture the vehicles in the U.S., CEO Akira Marumoto noted, “North America is the most important market for us,” suggesting they may move production in the coming years.

So far the carmaker has only one EV product on the market, the 2022 MX-30, which received middling interest from buyers. While details on their future models are sparse, Mazda estimates new lines will drop in 2025, with an entire fleet by 2030. Hybrids and lower-emission ICE vehicles are also planned, but it is unclear when, as company executives have yet to reveal their precise timeline.

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