Mazda Slashes EV Investment, Details New Skyactiv-Z for Next-Gen CX-5

During its “Lean Asset Strategy” presentation, Mazda has reduced its EV investment while giving us new details on the next-gen CX-5.

Mazda has just announced its new “Lean Asset Strategy” plan, where the Japanese automaker is set to materialise its multi-solution approach towards electrification. Part and parcel of its revised multi-solution plan is to reduce its EV investments while streamlining its combustion engine lineup with the arrival of the new Skyactiv-Z engine.

While it may sound counterintuitive to reduce your investments in EVs in gearing towards electrification, Mazda insists that it will move forward with the electrification plan by “utilising existing assets and forming strong partnerships” with technology partners like Changan, Toyota, Denso, and many more. This move promises to help Mazda reduce its EV investments from the initial JPY 2 trillion (RM59.355 billion) to only around JPY 1.5 trillion (RM44.516 billion).

Despite this reduction in investment, Mazda is still optimistic about its 2030 electrification target, citing the cost reduction won’t affect the development of its in-house EV platform. Set to feature a highly flexible layout, the new EV platform will debut later in 2027, possibly known as the Mazda CX-6e, featuring battery cells developed in collaboration with Panasonic.

Furthermore, by manufacturing its EV and ICE models on the same production line at Mazda’s Hofu plant, the investment can be reduced by 85% compared to building a new BEV-dedicated factory. These flexible production lines will utilise automatic guided vehicles (AGVs), AI, and factory over-the-air (OTA) updates, improving the efficiency of the entire supply chain.

In a bid to support this reduced EV investment, Mazda is also streamlining its existing combustion engine portfolio, with the new Skyactiv-Z engine set to play an integral role in this electrification transition. This new engine will form the core of Mazda’s future lineup of small products, where the automaker claims it will adhere to stringent emission regulations like Euro 7 without compromising on performance.

The next-gen Mazda CX-5 is due for a 2027 debut, featuring a hybridised 2.5-litre 4-cyl Skyactiv-Z petrol engine.

With that being said, the Hiroshima-based automaker also confirms that the new Skyactiv-Z engine will be making its debut on the long-rumoured, next-gen Mazda CX-5, which is set to arrive in late 2027. The new CX-5 will get a 2.5-litre 4-cyl petrol version of the new Skyactiv-Z, where it will be augmented with Mazda’s in-house hybrid system.

Thanks to its “higher thermal efficiency and an overwhelmingly wider range than existing Skyactiv-G and Skyactiv-X engines,” the new Skyactiv-Z engine will also be used as a benchmark to develop future larger straight-six engines for its large product group. Ultimately, the new powertrain lineup will allow Mazda to consolidate its combustion-powered offerings, reducing the total number of units in use by more than half.

Mazda CEO Masahiro Moro

“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,” said Mazda CEO Masahiro Moro.

“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.”