This Is Mazda's Latest Strategy For Investment Efficiency In The Electrification Era

The 35th anniversary of Mazda MX-5 Miata. (Doc. Instagram/@3aturahthew)

JAKARTA - The global automotive industry is facing major challenges in the transition to electrification. Inflationary pressures, production cost spikes, and infrastructure investment needs are the main obstacles for car manufacturers in developing electric vehicles (EVs).

In the midst of intense competition and economic uncertainty, the efficiency strategy is crucial so that the company remains competitive without sacrificing financial stability. Mazda Motor answered this challenge announcing a new strategy entitled "sleek assets" to control investment in its electrification efforts.

In the midst of inflationary pressures that have the potential to increase production costs, Mazda chose an efficiency approach by relying on strategic partnerships and maximizing existing production facilities.

Despite facing global economic challenges, as announced by Reuters, March 18, Mazda is still adhering to an investment plan of 1.5 trillion yen (IDR 168 trillion) until 2030, as announced in November 2022. Without efficiency measures, inflation is expected to increase investment by up to a third to 2 trillion yen.

EV Production On Existing Lines, Cut Costs And Time

As part of the "sleek assets" strategy, Mazda will produce electric vehicles (EVs) scheduled to launch in 2027 on the production line currently used for internal combustion engine (ICE) cars. This move allows an investment reduction of up to 85 percent and cut production waiting times by about 80 percent, compared to building a new EV-only plant.

In addition to production efficiency, Mazda also strengthened collaboration with a number of major partners. Together with Toyota Motor, Mazda worked together in developing electronic architecture, while Denso also contributed as a supplier of automotive technology. It is known, Toyota itself owns 5.1% of shares in Mazda, strengthening relations between the two companies in the face of the electrification era.

Mazda CEO Masahiro Moro emphasized that collaboration with various parties in the automotive industry is the key to maintaining Mazda's global competitiveness as a car manufacturer from Japan. With this strategy, Mazda hopes to remain competitive in the transitional era to electric vehicles without compromising his financial stability.