Mazda Motor (TYO:7261) has reduced its planned investment in electrification by 20% to 1.2 trillion yen through 2030, according to a Wednesday statement.
The revised plan was outlined in the company's fiscal 2026 results presentation, which also showed a sharp profit recovery after tariff-related pressures and cost improvements.
Mazda said it is shifting toward a "multi-solution" approach rather than a full transition to battery electric vehicles, citing uneven EV adoption across global markets and varying regulatory timelines. The automaker now expects electrification spending to be lower than earlier estimates, reflecting a more selective investment approach and a review of its in-house EV program launch timing.
Despite the adjustment, Mazda is still targeting electrified vehicle expansion, including a broader hybrid lineup and selective battery EV rollouts through partnerships, such as its collaboration with China's Changan Automobile.
The company sold about 1.22 million vehicles in fiscal 2026, while forecasting growth to 1.32 million units in fiscal 2027, driven partly by new model launches, including the CX-5.