Mazda Outlines Plans to Invest $10.6 Billion in Electric and Hybrid Vehicle Development Through 2030
Japanese automaker Mazda has trailed behind its domestic rivals including Honda and Toyota in the development of electrified vehicles. But a changing auto industry and pressure from governments to reduce carbon emissions has prompted Mazda to revamp its strategic roadmap through 2030, which include a significant investment for developing new electric vehicles.
The plans were announced as part of Mazda's updated Mid-Term Management Plan and management policies through 2030. The revised plans are a result of the significant changes that have occurred in the business environment including countries' environmental regulatory trends, according to Mazda.
The automaker also raised its sales target for electric vehicles to be up to 40% of its total global sales by 2030, up from 25% the company had originally targeted by 2030.
Mazda's electrification strategy includes a three-phase approach through 2030. Phase one includes making use of the automaker's technology to achieve both a reduction in our environmental footprint and produce attractive products.
For the second phase, Mazda said it will introduce a new hybrid system and also launch new fully-electric vehicles in China, as well as launch battery EV vehicles globally. The first of these hybrid vehicles will be produced between 2025 and 2027. For the third phase beginning in 2028, Mazda will promote the wide scale launch of fully-electric models. These plans also include possible investments in EV battery production.
Mazda plans to partner with Kanagawa, Japan-based battery maker Envision AESC Group, to secure batteries and increase EV production at its plants in Japan, according to Nikkei business daily, which cited sources familiar with the company's plans.
"We will promote the full-fledged launch of battery EVs and consider investing in battery production. We estimate Mazda's EV ratio in global sales to rise to a range between 25% and 40% as of 2030," Mazda said in a statement to Reuters.
Mazda will also advance its work on autonomous driving. The company aims to accelerate the development of safe, AI-powered advanced driver assistance technology with the goal of eliminating fatal accidents from its vehicles by 2040.
Over the past five years, Mazda fell behind its rival that has already launched plug-in hybrids and fully electric vehicles. Instead, the automaker remained focused on increasing the efficiency and emissions of its internal-combustion engines. But as countries around the world work to reduce carbon emissions to fight climate change, the pressure is on automakers to produce more zero emissions vehicles in order to comply with stricter emissions regulations.
Mazda will produce future EVs at its Hiroshima Prefecture assembly plant in Japan for export to the U.S. and other countries.
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