- Mazda has reduced its planned investment for electrification by half a trillion yen ($3.3B).
- The company aims for a “Multi-Solution” strategy, combining BEV, Hybrid, and ICE offerings.
- The new SkyActiv-Z engine will be introduced in a hybrid setup for the next-gen CX-5.
Mazda has introduced its new “Lean Asset Strategy,” aimed at enhancing the flexibility of its electrification plans, improving production efficiency, and cutting R&D costs through strategic partnerships. The Japanese automaker has also scaled back its planned investment in EVs, while unveiling the new SkyActiv-Z engine, which is set to debut by the end of 2027 in a hybrid configuration under the hood of the next-gen CX-5.
The company has dubbed the period leading up to 2030 as the “dawn of electrification,” and to navigate this, Mazda is sticking with its “Multi-Solution” approach. This means that, depending on customer demand, the brand will continue to offer a mix of internal combustion engine (ICE), hybrid, and battery electric vehicle (BEV) models
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The automaker has cut its planned investment in electrification from ¥2 trillion ($13.3 billion) to ¥1.5 trillion ($10 billion), a move that’s made possible by its ongoing partnerships with companies like China’s Changan, Toyota, Denso, and BluE Nexus.
Furthermore, by manufacturing EV and ICE models on the same production line, the investment can be reduced by 85% compared to building a new BEV-dedicated factory. These flexible production lines will utilize automatic guided vehicles (AGVs), AI tech, and Factory Over-The-Air updates, improving the efficiency of the entire supply chain.

In-House Developed EV
In addition to the Mazda6e sedan and the forthcoming electric SUV (likely to be named the CX-6e), products stemming from its collaboration with Changan, Mazda is also working on another EV set to arrive in 2027. This new, currently unnamed model will be built on Mazda’s own platform, which has been designed to accommodate various battery types and vehicle configurations.
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Mazda has claimed that through its partnerships, it has slashed EV R&D costs by 40%, while halving the amount of time spent on development. The new model will be manufactured in Japan and will feature batteries sourced from Panasonic Energy Corporation. Expect it to roll out globally, likely across markets in Japan, Europe, and North America.
New Engine Family
Mazda is placing significant emphasis on its upcoming SkyActiv-Z powertrain. The first vehicle to feature this new engine will be the next-generation CX-5, where it will be paired with an in-house developed hybrid system. While the SUV is expected to debut later this year, the version with the electrified SkyActiv-Z will arrive by the end of 2027.
According to Mazda, the new engine is “close to the ultimate combustion” delivering high fuel efficiency and performance. Furthermore, the SkyActiv-Z is compliant with strict emission regulations such as Euro 7 (Europe), LEV4, and Tier 4 (US), securing its future in the Mazda lineup.
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This new engine family will extend beyond the four-cylinder variant, with plans to use SkyActiv-Z technology in inline-six engines for larger models. Additionally, it will play a role in reducing emissions for the brand’s upcoming rotary engine. The new powertrain lineup will allow Mazda to consolidate its engine offerings, reducing the total number of units in use by more than half.
Mazda CEO, Masahiro Moro, stated: “As the automotive industry is going through a once-in-a-century seismic shift, Mazda keeps evolving by updating our “joy of driving” for the next generation of vehicles. “All of us at Mazda are committed to striking the right balance of efficient business management and development of sustainable technology to deliver unique value regardless of business scale.”