n response to the US Inflation Reduction Act, which incentivizes manufacturers investing in electric vehicle (EV) and battery production in North America, Mazda is reconsidering its electrification strategy and contemplating localized EV manufacturing in North America, potentially starting in 2028. While Mazda leans toward Mexico rather than the United States for its future EV plant, the decision aligns with the company’s evolving plans to embrace electrification.
CEO Masahiro Moro disclosed Mazda’s intentions during a recent media interaction, outlining the likelihood of commencing North American EV production between 2028 and 2030, a phase within the new mid-term business plan initiated in November. With an allocated budget of $10.6 billion (1.5 trillion yen) for electrification until 2030, Mazda plans to fully transition to EVs by 2028, slightly later than previously projected.
Moro clarified that Mazda’s North American EV production would fall under the third phase of their plan. The company aims to introduce two types of all-electric models: one utilizing an existing architecture compatible with internal combustion and hybrid powertrains, and another based on a dedicated EV platform. While these models are set to debut between 2025 and 2027, the initial production will likely take place in Japan.
Presently, Mazda operates two production facilities in North America. One is an assembly plant located in Salamanca, Mexico, where popular models like the Mazda2, Mazda3, CX-3, and CX-30 are manufactured. The second is a joint venture plant with Toyota in Huntsville, Alabama, responsible for producing the CX-50 crossover. The Huntsville plant has an annual production capacity of 150,000 vehicles.
Regarding the possibility of building EVs in Alabama, Moro stated that it is not currently under consideration. He emphasized that Mazda would need to consult with its partner Toyota before introducing EV production at that location. Instead, the automaker is considering Mexico as a potential option, as investing in a new factory solely for EV production in North America would be financially challenging at the moment.
Mazda has set ambitious goals for the future, with EVs projected to account for 25 to 40 percent of its global sales by 2030. Currently, the company offers one all-electric model, the MX-30 crossover, in its vehicle lineup. As Mazda’s electrification journey unfolds, their strategic decisions will shape the brand’s path toward sustainable transportation and their contribution to the evolving automotive landscape.
