Mazda is selling more cars than ever—all without an EV in sight

Mazda is defying industry trends with surging sales of its gas-powered SUVs. Can it keep the momentum going without a fully electric vehicle in its lineup?

TomBrady

Jan 3, 2025 - 10:22

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Mazda is selling more cars than ever—all without an EV in sight

While many automakers are racing toward electrification, Mazda is proving that there’s still room for gas-powered success. The Japanese automaker is set to break its U.S. sales record from 1986, with over 420,000 vehicles expected to be sold in 2024—a 16% increase from the previous year.

Mazda’s president of North American operations, Tom Donnelly, credited the popularity of its compact crossovers and mid-size SUVs for this growth, with a target of 450,000 vehicles for 2025. “We’re growing our business in what has largely been a stable industry,” Donnelly said, talking about the consistent sales volume that Mazda has seen from its compacts and mid-size SUVs.

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A slow move toward EVs

Despite its success, Mazda’s approach to electrification has been cautious. The company currently offers three hybrid models: the CX-50 hybrid, built with Toyota technology, and plug-in versions of the CX-70 and CX-90 SUVs. Reviews for these hybrids have been mixed, and Mazda’s fully electric vehicle plans remain limited.

Mazda intends to launch an in-house hybrid system and test the US market with a fully battery-electric vehicle by 2027. This would mark its first EV since the short-lived MX-30. However, Donnelly remains skeptical about rapid EV adoption, citing a current penetration rate of just 10% in the US. “We’re not a brand that is out there making a bold proclamation about 100% by any particular time frame,” he said.

What’s driving Mazda’s success?

Mazda’s lineup relies heavily on a few key models. The CX-5, a compact crossover manufactured in Japan, remains its best seller, despite being one of the oldest vehicles in its lineup. A redesign is expected within the next two years. The CX-30 subcompact hatchback and the Alabama-made CX-50 have also contributed significantly to the brand’s recent surge.

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Still, even with potentially subpar offerings, Mazda stands to benefit from the rising share of American consumers who are becoming more interested in hybrid and PHEV options compared to fully electrified EVs, according to data from the Alliance for Automotive Innovation.

Final thoughts

With overall US auto sales projected by Kelley Blue Book to rise just 2.3% in 2024, Mazda’s performance is a standout. However, challenges remain. While Mazda charts new territory for its U.S. sales, it still lags behind competitors like Subaru, Kia and even Nissan, which has struggled with a host of its own problems in 2024.

Moving forward, navigating the evolving landscape of EV demand will test Mazda’s strategy in the years ahead. For now, Mazda’s success underscores that even in a market obsessed with electrification, gas-powered vehicles still have a strong following. Whether this strategy remains viable long-term is a question the company will need to answer as it gears up for the coming years.