Mazda has officially joined the growing list of automakers backing away from aggressive EV plans. The difference is that while rivals like Ford, GM, and Stellantis are swallowing enormous losses after changing course, Mazda claims its own retreat won’t cost the company anything at all. Mostly because it barely started.

The Japanese automaker confirmed this week that its first dedicated electric vehicle has been delayed from 2027 until at least 2029. Instead, Mazda says it’ll shift focus toward hybrids and combustion-powered models while continuing to watch global EV demand carefully.

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That cautious approach, which could have made Mazda look like it was miles behind the curve, suddenly looks pretty well timed. EV growth has slowed noticeably in key markets, including the United States, where hybrids are currently enjoying a surge in popularity. Mazda says hybrid versions of its CX-50 (seen below) already account for roughly 35 to 40 percent of sales, giving the company more reason to prioritize gasoline-electric models instead of fully electric ones.

“We made the decision before we started,” Moro said during an earnings presentation of the decision to delay, according to Automotive News. “For battery EVs we were always careful.”

Bigger, rival brands must be wishing they’d been equally circumspect. Over the past two years, several major automakers have delayed or canceled EV projects after investing billions into factories, battery plants, and production tooling based on overly optimistic demand forecasts. Ford, GM, Honda, Stellantis, and others have also adjusted plans as market conditions changed, and it’s cost them billions.

Mazda, meanwhile, essentially kept its wallet closed. The company now plans to cut planned electrification spending through 2030 almost in half, dropping from roughly $12.5 billion to around $7.5 billion. Moro said there were no write-downs or impairment costs because Mazda hadn’t yet committed major assets to production.

Focusing On Hybrids

Instead, the company will focus heavily on hybrids powered by its upcoming Skyactiv-Z engine family. Several new hybrid models are planned before the decade ends, including a redesigned CX-5 hybrid using Mazda’s own in-house system rather than Toyota technology.

Mazda isn’t abandoning EVs completely, though. The automaker will continue selling electric models like the 6e and CX-6e (seen below), developed alongside Chinese partner Changan in overseas markets, including Europe and Australia.

Mazda