Mazda is delaying its next all-electric vehicle (EV) until at least 2029, shifting its immediate focus to hybrid technology. This decision, reported by Automotive News based on Japanese sources, reflects growing uncertainty in the EV market, particularly in the United States. Originally aiming for EVs to comprise 25–40% of global sales by 2030, Mazda now anticipates a lower figure, likely under 25%, due to changing regulatory conditions and consumer demand.
The Shift to Hybrid Power
Instead of accelerating EV development, Mazda will prioritize hybrid vehicles. The company is developing its own four-cylinder hybrid system, slated for integration into the popular CX-5 SUV by 2027. This move positions Mazda to capitalize on hybrid demand while navigating the evolving EV landscape. The CX-5, a top seller for Mazda, is expected to benefit significantly from this new powertrain.
Why the Delay?
Several factors contribute to Mazda’s revised strategy. The company’s first U.S. EV offering, the MX-30, underperformed due to limited range (just 100 miles) and restricted availability (California only). This early stumble likely influenced the decision to reassess EV timelines.
Furthermore, geopolitical and economic shifts played a role. The Trump administration’s tariffs on imported vehicles and the elimination of federal EV tax credits in late 2025 severely impacted EV sales. These policy changes created a more challenging environment for EV adoption, prompting Mazda to adjust its projections.
The Bigger Picture
Mazda’s shift is part of a broader trend among automakers re-evaluating EV timelines. The initial hype surrounding EVs has cooled as infrastructure challenges, raw material costs, and consumer hesitancy persist.
“Implementation could be changed,” Mazda CEO Masahiro Moro admitted, acknowledging the need for flexibility in the face of market realities.
This is not a retreat from electrification entirely. Mazda continues to develop its own EV technology, but it is now taking a more measured approach. The company will monitor regulatory trends and consumer preferences before committing to a firm EV launch date.
Looking Ahead
For now, Mazda’s short-term strategy centers on strengthening its hybrid offerings. The CX-50 Hybrid (utilizing Toyota technology) and plug-in hybrid variants of the CX-70 and CX-90 already demonstrate the company’s commitment to electrified powertrains. The upcoming in-house hybrid system for the CX-5 promises to further enhance Mazda’s position in the market.
Ultimately, Mazda’s decision reflects a pragmatic response to a dynamic automotive landscape. By prioritizing hybrids while maintaining EV development, the company aims to balance innovation with market viability.
