Mazda Motor Corporation will strengthen its commitment to China and accelerate the development of electric vehicles alongside Changan Automobile, amid the global slowdown in the automotive industry and the significant financial pressures the Japanese company faced during fiscal year 2026.
The automaker confirmed that the Chinese market will remain a strategic pillar in its electric transition, despite declining sales and lower demand for internal combustion engine vehicles in the Asian country.
Mazda revealed that it will continue expanding its lineup of electric vehicles developed jointly with Chongqing Changan Automobile Co., Ltd., a partnership that has become one of the central pillars of its global electrification strategy.
The company is currently facing one of its most challenging periods in recent years after reporting a 72.3 percent drop in operating profit due to U.S. tariffs, rising raw material costs, inflation, and the global automotive industry crisis.
Mazda accelerates electric vehicle development with Changan Automobile
Mazda confirmed that it will launch new electric vehicles developed alongside Changan as part of its technology offensive in China and other international markets.
The company has already introduced the new Mazda EZ-60, a second-generation electric crossover, to the Chinese market, while the Mazda EZ-6 served as the foundation for the Mazda6e, an electric model designed for the European market.
The automaker explained that these vehicles represent a new chapter for the brand in terms of electric mobility and global automotive design.
The Mazda6e was even recognized with the “World Car Design of the Year 2026” award during this year’s World Car Awards.
Mazda stated that it will continue expanding its joint development efforts with Changan to strengthen its presence in:
China, Europe, ASEAN, and Australia, regions where electric vehicle adoption is advancing more rapidly.
China remains key to Mazda’s electric strategy
Although Mazda’s sales in China declined by 4 percent year-over-year during FY2026, the company made it clear that the country will remain fundamental to its technological transformation.
The company explained that the slowdown was mainly caused by the decline in demand for internal combustion engine vehicles, a trend affecting virtually the entire automotive industry in China.
However, Mazda highlighted that the new EZ-6 and EZ-60 electric models continue to perform solidly and represent a medium-term growth opportunity.
The Japanese manufacturer believes China will remain one of the world’s most important centers for electric vehicle innovation, automotive software, and next-generation mobility platforms.
Mazda cuts costs and reshapes its global electrification strategy
As part of its new strategy, Mazda also confirmed that it will significantly reduce spending dedicated to electrification.
The company revised its investment plan for electric technologies between 2022 and 2030, lowering the projected budget from 2 trillion yen to 1.2 trillion yen.
Mazda explained that it will seek to optimize resources through strategic partnerships, shared platforms, and flexible low-cost production.
In this context, the partnership with Changan becomes even more relevant, as it will allow the Japanese automaker to accelerate EV launches without fully absorbing the high costs of industrial development.
The company expects electric vehicles to account for approximately 15 percent of its global sales by 2030.
Mazda insists on a “multi-solution” strategy for the automotive future
Mazda reiterated that it will not rely exclusively on electric vehicles, but will instead maintain a “multi-solution” strategy tailored to each market.
The company explained that it will continue developing hybrid vehicles, plug-in hybrids, electric vehicles, and internal combustion engines depending on regional needs.
Mazda believes electrification is progressing at different speeds around the world and argues that offering multiple technologies is the “most rational and practical” way to address the future of the automotive sector.
The automaker also noted that operating in more than 130 markets requires maintaining technological and commercial flexibility to serve consumers with varying levels of infrastructure and EV adoption.
Mazda seeks recovery after a sharp profit decline in 2026
The push into China and new electric vehicles comes at a critical moment for the Japanese company. During FY2026, Mazda reported revenue of 4.91 trillion yen, a year-over-year decline of 2 percent. Operating profit plunged 72.3 percent, while net income attributable to owners fell 69.2 percent.
Mazda attributed this deterioration primarily to U.S. tariffs, higher logistics costs, global inflation, and volatility in raw material prices.
The company acknowledged that trade tariffs reduced its annual operating results by approximately 154.9 billion yen.
Mazda projects global growth driven by EVs and new models
Despite the challenges, the brand expects to return to growth during FY2027. The company projects global sales of 1.324 million vehicles, an increase of 8.3 percent compared to the previous fiscal year.
It also expects operating profit to rise by 190.8 percent, reaching 150 billion yen.
The recovery is expected to be driven by the new Mazda CX-5, the expansion of electric vehicles in Europe and Asia, and aggressive cost-reduction programs.