Why Mazda is about to get less Japanese

Mazda has pushed back its in-house EV plans to 2029 as it focuses development of its incoming in-house hybrid drivetrain, according to a new report.

Mazda had planned to launch its next-generation Japanese-developed electric car in 2027, but had pushed back to 2028 and now 2029. According to industry source Automotive News this is because hybrid demand is booming in the US, while electric vehicle incentives are being removed.

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This revises Mazda’s original expectations of 25 - 40 per cent of global volume to be fully electric by 2030.

However, while a significant portion of the brand's sales remain in North America and Japan, a significant portion remains in markets like Europe and Australia. Australia is the third largest market by volume for Mazda globally, after the US and Japan, forcing the brand to adapt to our conditions.

This means sourcing more low emissions vehicles in the interim to comply with our Euro-inspired New Vehicle Efficiency Standard (NVES). This recently-introduced regulation tightens the vice on carbon emissions based on manufacturer’s vehicle sales, under threat of fines for every unit sold which pushes them over a pre-defined CO2 limit.

Mazda is one of the most exposed brands in Australia currently. It offers only a limited array of hybrid models, with the majority of its sales still being pure combustion vehicles, like the ever-popular CX-5.

A next-generation CX-5 is due, although it will continue on with a petrol engine until the hybrid variant launches in 2027. Unlike the hybrid Mazda CX-50 available in America, which borrows its hybrid tech from Toyota, the new CX-5 will use an in-house Mazda-developed hybrid system the brand calls SkyActiv-Z.

In the interim, Mazda has confirmed it will sell the China-built fully electric 6e sedan and CX-6e, both are platform-shares with Changan’s Deepal brand. The brand has earmarked even more models to potentially spawn from this tie-up.

Potentially this could include a Mazda take on Deepal’s S09 over-five-meter-long large SUV, or a small SUV based on the more compact S05, which would sit beneath the CX-6e to compete with the likes of MG’s S5.

In another potential blow to Mazda in Australia, there are also fresh reports out of Japan that its two entry-level models, the Mazda 2 and CX-3, will cease production over the course of 2026.

While these two cars are the oldest models in Mazda’s line-up, they continue to sell well in Australia thanks to regular updates. 

The removal of these accessible models plus the delay on a hybrid CX-5 could see Mazda tumble down the sales charts in 2026, making the roll-out of its Chinese-built models ever more important.

However, Japanese media are also reporting a small car successor is due based on the Vision-X compact car shown at Tokyo Motor Show in 2025. The model will reportedly be built in Thailand as part of a push by Mazda to make the country a new export hub. Again, if this model does come to Australia, it could be as far out as 2028, making Mazda’s short term outlook for 2026 and 2027 more challenging.

Mazda has told CarsGuide in 2024 its order of priorities are the new CX-5, its hybrid version, and then “small architecture cars.”

Stay tuned for more on Mazda’s plans for 2026 as it faces a rapidly changing new car market. In particular it will need to fend off an aggressive new model strategy from an ambitious BYD, which is plotting a top-three market position by the end of the year.