Mazda's grand China plans: Billions in investments flagged for new hybrid and electric cars in world's largest EV market, so where does that leave Australia?

Mazda is strengthening its investments in China, proving yet again how integral the country is to the future prosperity of global automakers.

According to Chinese media, Mazda will invest 10 billion yuan (A$2.1 billion) into its Nanjing operations over the next two years with the aim of doubling its annual production output to 300,000 vehicles for the Chinese market by 2027.

The China-for-China strategy will aim for 90 per cent of those vehicles to be hybrid and EVs, including Mazda's newest EV for the Chinese market and first Tesla Model Y rival, the EZ-60 SUV. It was officially revealed at the Shanghai auto show in late April.

Built in partnership with Chinese domestic manufacturer Changan, the EZ-60 will ride on the same platform as the Deepal S07 currently on sale in Australia, though an Australian launch remains uncertain for now.

The same model in sedan form – the Mazda EZ-6 – is already on sale in China and will reach European markets as the 6e later this year. It is set to launch in the UK, a fellow right-hand drive market, in 2026.

An Australian launch for the 6e is proving more likely after the brand’s local CEO Vinesh Bhindi indicated an electric successor to the Mazda6, which was discontinued in January, is on the way.

"As we bid a fond farewell to the Mazda6, its legacy will continue to live on as we move into the next phase of our future strategy,” said Bhindi at the time.

Mazda’s broader strategy to electrification includes 1.5 trillion yen (A$16 billion) worth of investments by 2030 to rapidly expand the number of hybrid, plug-in hybrid (PHEV), range-extender (EREV) and EVs it offers.

That includes two additional models built in China in collaboration with Changan, as well as Mazda’s first in-house developed EV to be built at the brand’s factory in Hifo, Japan for “global deployment” by 2027.

Details on the model remain under wraps for now, with Mazda choosing to take a multi-faceted approach to the EV transition for non-Chinese markets that continues to include use of internal combustion engines (ICE).

The new 'SkyActiv-Z' engine, a four-cylinder petrol engine with high thermal efficiency and Euro 7 compliant emissions, is set to underpin the new CX-5 Hybrid by 2026. The current petrol-only model is the brand’s most popular in Australia.

Mazda doesn’t currently offer an EV on the Australian market, instead opting for efficient petrol, diesel, and more recently, plug-in hybrid powertrains, under its newer models such as the CX-60 and CX-80 SUVs.

It isn’t the first global automaker to opt for a China-for-China strategy to make up for its EV shortfalls in the world’s largest car market, either, where close to half (47.9 per cent) of new cars sold last year were PHEVs and EVs.

Volkswagen, China's second best-selling car brand, recently announced its plans to develop 30 new hybrid, EREV and EV models exclusively for China by 2027, as it fights to remain competitive against increasingly popular domestic brands BYD and Geely Group.