Mazda has unveiled a new management strategy centered on a “light asset” approach. The strategy aims to overcome the challenges faced by mid-sized manufacturers in the automotive industry. Mazda plans to maximize the use of existing resources to adapt nimbly to the electric vehicle (EV) era while minimizing financial risks.
Mazda CEO Masahiro Moro elaborated on the strategy, stating that the company’s light asset approach boosts the efficiency of its current assets, enabling even smaller companies to remain competitive. “This pragmatic strategy allows us to effectively navigate the EV landscape without requiring massive capital outlays,” he added.
In line with this approach, Mazda intends to scale back its EV-related investments from the initial 2 trillion JPY (about $14 billion) to 1.5 trillion JPY (about $10.5 billion) by 2030. The automaker anticipates cutting battery-related costs by half through enhanced partnerships.
Masahiro emphasized that instead of constructing dedicated EV plants, the company plans to leverage its existing internal combustion engine production lines for mixed production. He noted that this approach could potentially boost their production line utilization to 100%.
Since 2006, Mazda has streamlined its production processes by approximately 40% through its “Monozukuri Innovation” initiative. Since 2017, the company has also integrated automated guided vehicles to enhance production flexibility and accommodate various powertrains, forming the cornerstone of its light asset strategy.
Furthermore, Mazda plans to enhance supply chain efficiency by strengthening supplier collaborations. The company aims to streamline component varieties, such as vehicle control units and wire harnesses, while implementing a Factory OTA (Over-The-Air) system for factory remote software management. These measures are expected to reduce inventory costs and boost production efficiency.
Leveraging this strategy, Mazda projects it can slash initial investment costs and preparation time for mass-producing its new EV, slated for 2027, by 85% and 80%, respectively, compared to building a dedicated EV factory.
This approach represents Mazda’s pragmatic solution to overcome capital and scale limitations through technological agility and efficiency. It offers a potential roadmap for mid-sized manufacturers grappling with resource constraints, diverging from the strategies of global automotive giants.
