Mazda's Potential New Electric Vehicle in the US

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【Summary】Mazda plans to launch new EVs in the US by 2025, despite the disappointing sales of its first electric model, the MX-30. The new EVs will be built on platforms shared with gasoline-powered vehicles to reduce costs. However, this means they will not be eligible for federal EV tax credits. Mazda has not disclosed the specific vehicles it plans to launch but SUVs are considered likely. The company aims for EVs to make up 25-40 percent of its global sales by 2030.

FutureCar Staff Oct 16, 2023 4:15 PM PT

Mazda's Potential New Electric Vehicle in the US

Mazda's first battery-electric production model, the MX-30 crossover, has faced challenges in the US market. It only survived for two model years, from 2022 to 2023, due to a low range rating of 100 miles and limited availability. The car was often referred to as a compliance car, and its sales numbers reflected this perception. In the first eight months of 2023, Mazda only sold 100 MX-30s in the US, representing a 69 percent decrease from the previous year.

While the MX-30 will continue to be available in other markets like Japan and Europe, featuring a range-extender variant with a Wankel rotary generator, it will no longer be sold in the US after the 2023 model year. However, Mazda has not given up on the idea of selling EVs in the US.

According to a report from Nikkei Asia, Mazda plans to launch new EVs in the US as early as 2025. These new EVs will be built on platforms shared with existing gasoline-powered vehicles, primarily for cost reasons. This approach differs from other automakers like GM and Volkswagen, who are adopting dedicated EV architectures for their electric vehicles. The report also states that Mazda's future EVs will be produced at its plant in Hofu, Japan.

However, this decision means that Mazda's new EVs will not be eligible for the federal EV tax credit of up to $7,500, as the final assembly needs to be done in North America to qualify for the credits. Despite this limitation, Mazda aims to launch EVs that will appeal to potential buyers in the US market. SUVs are considered a safe bet, as small EVs have proven to be less profitable in the country.

Mazda's Chief Executive, Masahiro Moro, acknowledged the challenges of making small EVs profitable in the US market. He stated, "It's hard to make money by making small EVs given the high costs of producing automobiles. We are looking at a segment that will appeal to would-be EV buyers." As a result, an electric Mazda MX-5 sports car may not be a priority for the brand.

The US market is crucial for Mazda, accounting for around 30 percent of its total global sales. The brand aims for EVs to make up 25-40 percent of its global sales by 2030, reflecting its commitment to the growing EV market.