Mazda announced on the 18th that it will cut its investment in EV batteries by half, reducing its initial 750 billion yen budget to a significantly lower figure.
The decision stems from the uncertainty in market demand and the inflation-driven increase in total electrification investment, which is expected to rise from the initial estimate of 1.5 trillion yen to 2 trillion yen.
To address this, Mazda will enhance efficiency through collaboration with Toyota and other partners, aiming to keep total investment at around 1.5 trillion yen.
Mazda President Masahiro Moro emphasized during a press conference in Tokyo that battery production and development require substantial investments, but given the volatile market demand, the company must adopt a more cautious and rational investment strategy.
He also revealed that Mazda's upcoming EV, set for release in 2027, will benefit from joint development with Toyota, leading to a 40% reduction in development costs.
Industry analysts note that this move highlights the uncertainty surrounding the global EV market.
As governments worldwide adjust their new energy policies and consumer demand remains unpredictable, automakers are increasingly cautious about battery investments and production scalability.
Perhaps more critical is whether the EV market will truly grow as rapidly as anticipated.
With varying policies and infrastructure developments across different countries, the pace of expansion may not align with earlier projections, making it crucial for automakers to adapt swiftly to market fluctuations.