Mazda and Changan to Invest $1.4 Billion in China EV Expansion
Mazda Motor Corporation and its Chinese partner, Changan Automobile, have announced a joint investment of RMB 10 billion (approximately $1.4 billion) to accelerate the development of smart and electric vehicles in China by 2027. The strategic initiative aims to position their joint venture, Changan-Mazda, as a competitive leader in the rapidly evolving automotive sector. According deputy president Deng Zhitao, the partnership plans to launch one new electric vehicle model annually from 2024 through 2027. The overarching goal is to triple annual sales to 300,000 units by 2027, with new energy vehicles, including all-electric and plug-in hybrid models, accounting for 90% of these sales. This aggressive expansion comes amid challenging market conditions, as Changan-Mazda’s sales dropped significantly in August, and Japanese brands collectively saw a decline in their share of the Chinese passenger car market. The joint venture has already initiated this strategy by introducing the EZ-6, its first EV sedan, which features multiple powertrain variants. This substantial financial commitment underscores Mazda's determination to adapt to local preferences and regain market relevance in China's highly competitive new energy vehicle landscape.
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Mazda and Changan to Invest $1.4 Billion in China EV Expansion
Mazda Motor Corporation and its Chinese partner, Changan Automobile, have announced a joint investment of RMB 10 billion (approximately $1.4 billion) to accelerate the development of smart and electric vehicles in China by 2027. The strategic initiative aims to position their joint venture, Changan-Mazda, as a competitive leader in the rapidly evolving automotive sector. According deputy president Deng Zhitao, the partnership plans to launch one new electric vehicle model annually from 2024 through 2027. The overarching goal is to triple annual sales to 300,000 units by 2027, with new energy vehicles, including all-electric and plug-in hybrid models, accounting for 90% of these sales. This aggressive expansion comes amid challenging market conditions, as Changan-Mazda’s sales dropped significantly in August, and Japanese brands collectively saw a decline in their share of the Chinese passenger car market. The joint venture has already initiated this strategy by introducing the EZ-6, its first EV sedan, which features multiple powertrain variants. This substantial financial commitment underscores Mazda's determination to adapt to local preferences and regain market relevance in China's highly competitive new energy vehicle landscape.
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