By Yuiko Sakashita / Yomiuri Shimbun Staff Writer

Mazda Motor Corp. plans to produce new electric vehicles, scheduled for release in 2027, at its Hofu Plant in Hofu, Yamaguchi Prefecture, the automaker said Wednesday.

The company aims to reduce initial investment by not building a new dedicated plant. If demand for EVs increase, Mazda will consider expanding production to other plants, the company said.

Currently, the Hofu Plant is the main production site for plug-in hybrid vehicles. According to the carmaker's estimates, using the Hofu Plant instead of building a new factory will reduce initial capital investment by 85%. Additionally, the preparation period for mass production will be significantly shorter.

The Hofu Plant utilizes a mixed-model production system in which multiple vehicle types, including gasoline-powered vehicles, are assembled on the same production line. This system allows the plant to operate efficiently, even if demand for EVs decline.

The company also plans to establish a battery supply system by 2027, when sales are scheduled to begin. A new battery assembly plant for EVs will be built in Iwakuni, Yamaguchi Prefecture, located about midway between the Hofu Plant and the main plant in Fuchu, Hiroshima Prefecture.

Mazda expects that EVs will account for approximately 25% of sales â€" in terms of units sold â€" by 2030.

"For a small player like us, increasing the utilization rate (of existing factories) is a wiser approach than building new factories," said Taketo Hironaka, Mazda's managing executive officer. "We will closely monitor demand trends and also consider strengthening production capabilities."

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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June 05, 2025 20:55 ET (00:55 GMT)

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