Here’s a fun one to consider as we start the new year: Mazda doesn’t sell a single Battery Electric Vehicle (BEV) in the United States and, yet, it massively outgrew every other major automaker and is on its way to setting a sales record. How did Mazda do this?
The Morning Dump this week is likely to be dominated by sales data because we’re going to start learning how every automaker ultimately did. If you read this column regularly then you know there’s a lot I’m personally watching, including how the Honda Prologue stacks up against the Equinox EV, how close we get to 16 million car sales for 2024, and how fears about the IRA EV tax credit going away are impacting EV sales.
Right off the bat, we learned how Tesla did this year against BYD, barely keeping its crown. I’m curious if this means Tesla is going to lose it in 2025. Markets like Norway certainly help Tesla, and this year only a tiny number of cars will be powered by the traditional gasoline engine.
Selling cars is, it seems, a good business, and one New England dealer has done well enough that he’s giving away $100 million for a new center to help find a cure for cancer.
Car Buyers Think They Know What They Want
I invite you to watch a Richmond-area Mazda dealer’s advertisement, which deploys a Sia song called “Unstoppable,” though it removes the line about being a “Porsche with no brakes.”
The campaign is called “Move and Be Moved” and it’s what Mazda’s North American President Tom Donnelly credits with Mazda’s success this year.
I touched on this last month, but Mazda grew a lot in 2024 and has already set a record for its best year ever. You can see in this chart from Cox Automotive that the automaker’s projected 16.3% increase in annual sales is far outpacing the market, and if it weren’t a smaller brand, it would have had the biggest market share increase (that went to Honda, which sells more than 3x the number of vehicles Mazda does).
“Mazda is a brand that takes you places and moves you forward, and visually the tone, the language of the campaign, is very different from anything in the marketplace,” Donnelly told Automotive News earlier this year.
That sounds like a lot of marketing nonsense-speak, and these ads are definitely of the models doing lifestyle things while a voiceover tries to make you feel like the only difference between the you that runs across mountains and the one that starts a TikTok channel devoted to new Takis flavors is a CX-30 variety. Still, this works for a couple of reasons.
“The problem we’re trying to solve is, from our research, 89% of car shoppers know the brand they want to purchase, and 79% end up purchasing that brand,” said Donnelly in the same interview.
Mazda doesn’t have a luxury brand, so the company is trying to move itself in a slightly more premium space. It also has one other big trick up its sleeve.
“Our aspiration is we want to offer competitive incentives, so that we can transact and continue to grow our business, but we also want to price our vehicles appropriately.” He admitted they were very competitive with incentive spend in the first year, though Donnelly said they’ve moderated incentives and spent more on marketing.
How is it possible that Nissan is struggling, Honda thinks it needs Nissan, and yet Mazda is doing so well and doesn’t have any electric cars for sale, two PHEVs, and a hybrid borrowed from Toyota?
There are some obvious factors. The cars and crossovers all look great. There isn’t a bad-looking Mazda for sale. Additionally, they aren’t always the best vehicle in any specific category, but unlike Nissan none of them are the worst. Mazda has just continued to make attractive, competitively priced, well-engineered vehicles, and hasn’t been as distracted by having to market an uncompetitive EV (which is maybe why the company’s one attempt in the USA was so weird).
Donnelly, though, gave it away earlier. Mazda has moved some of its vehicles up a little in the marketplace and has adjusted some of its pricing upwards, but it’s also countered that with a lot of incentives to start the year. It then spent a lot of money trying to incept the idea of “choosing” a Mazda in the minds of a lot of people.
It can do this because it’s a Japanese company and the Japanese Yen has (mostly) remained down relative to the USD, which is good for people importing cars from Japan and also great for export-heavy Japanese companies. Toyota and Honda all saw record profits during this period, but those companies are still heavily tilted towards production in the United States. Mazda’s CX-5 and Miata are both made in Japan and the CX-30 is made in Mexico. Even the CX-50, which is made here, is produced at Toyota’s plant in Alabama.
For now, Mazda benefits from selling cars in $ while building them in ¥ or MEX$. Seeing weakness in the market, Mazda smartly invested a lot of that surplus into improving its brand recognition and status while companies like Nissan and Jeep faltered.
In a new tariff regime under President Trump this might get a little tougher.
Is 2025 The Year That Tesla Loses Its EV Crown?
The big news of the morning was that Tesla, in spite of shrinking this year, just barely stayed ahead of BYD for the important title of “biggest EV car company in the world.” Because it also sells a variety of hybrids, BYD sold way more cars than Tesla, it just happened to sell about 25,000 fewer EVs.
That’s quite close. BYD has outsold Tesla on a quarter-by-quarter basis before, including in Q4 where it sold 595,413 EVs to Tesla’s 495,570 according to Electrek.
Obviously, if you only extrapolate out Q4 sales then you’d assume that 2025 is the year Tesla loses out to BYD. Maybe that’s the case. Musk seems more focused on the Cybercab and AI than he’s been on selling cars.
The big question, I think, revolves around incentives. In the United States, we know that the answer is uncertain. China, though, has made it clear it will likely to continue some form of support for buyers, not to mention the many automaker-led incentives that are coming.
China has signaled plans to extend incentives for consumer to trade in older cars and light trucks in 2025, but specifics of the nationwide program remain unclear.
Nanjing, the capital city of eastern China’s Jiangsu province, said this week it would continue to provide subsidies of up to 4,000 yuan per car purchase this year.
Chinese authorities have agreed to issue 3 trillion yuan worth of special treasury bonds this year, Reuters has reported, as Beijing ramps up fiscal stimulus to revive a faltering economy partly via subsidy programs.
Tesla obviously builds and sells cars in China as well, but BYD has no exposure to weakness in the United States and little to sales slumps elsewhere. If Chinese EV sales remain hot and every other market cools, that’s net better for BYD, though BYD would obviously love to sell cars elsewhere.
Less Than 1% Of New Cars Sold In Norway In 2024 Were Gasoline-Powered
The Norwegian plan to switch to electric cars continues to work, with the country’s 2024 data showing that approximately 9-in-10 new cars sold were BEVs. In second, were regular hybrids, followed by plug-in hybrids, diesel, and a tiny sliver of gas-powered cars.
Data above is from Europe’s car industry group through November, but the pattern seems to have held through the year.
What makes Norway special? Well, for one, it’s trying to go full zero-emission in 2025 and will come close enough to doing it to call it a success. It achieved this through a mix of incentives (lower import tariffs, special parking, et cetera) and the abundance of cheap hydro-electric power.
From CNBC:
Gas pumps and parking meters are being replaced by chargers. It’s an electric utopia of the future. Norway’s grid has been able to handle the influx of EVs so far because of its abundance of hydropower.
“Electric cars are maybe a third of the price of gasoline because we have close to 100% hydropower. It’s cheap. It’s available and renewable. So that’s a big advantage,” said Petter Haugneland, the assistant secretary general of the Norwegian EV Association.
Tesla is, by far, the most popular vehicle in Norway, but Chinese companies are eyeing the market and it wouldn’t be a huge surprise to see one sneak into the Top 10 in 2025.
If fewer than 1% of cars are gasoline-powered, this means that Ferraris and 911s have to make up a hilariously large % of gas-powered car sales. It’s also worth mentioning that the commitment to EVs has been consistent since the 1990s, which makes it easier for consumers and companies to make long-term commitments to electric cars.
Dealer Gives $100 Million For Cancer Center
Here’s a nice, positive note to end the morning on. Herb Chambers, who owns the biggest car dealership group in New England, just announced a $100 million donation to help Mass. General Hospital in Boston build a giant cancer center.
“Financially, I’ve done well,” Chambers, 83, told the Boston Globe. “I owe so much to Massachusetts, to the people that are my customers here. They’ve given me whatever I have. … I want to give back for what I’ve received.”
The donation amounts to roughly $7,000 for every day since Chambers bought his first dealership in 1985. The Herb Chambers Cos. is No. 28 on Automotive News’ 2024 list of the largest U.S. dealership groups, selling 25,863 new vehicles from 47 locations.
Chambers said he wants the facility to be a “beacon of hope for everyone touched by this awful disease” and that there can never be enough money put into finding a cure.
What I’m Listening To This Morning
Feels like an Interpol morning, don’t it? I hear this band is “All the rage back home.”
The Big Question
Would you consider a Mazda for your next new car? What are your vibes about the brand?
I had a Mazda3 and it was extremely overrated as a driver’s car, felt and was flimsy, rusted rapidly, and was more expensive than its competitors. I mostly bought it because options were so limited for the kind of thing I was looking for at the time. I replaced it with its platform mate from Ford, which was better in every measure for less money. They’re not off the list, but not near the top (I’m not sure who is at the top at this time as I hate almost everything being sold now, so I guess I hope the GR86 lasts until I die). Of course, Mazda doesn’t make anything I’m interested in, anyway (Miata is a too-cramped toy, the 3 is bland and auto-only, and they’re both a little expensive for what they are).
Mazda is about the only brand I’d consider in this market if I needed a car. There really isn’t much I like outside of what they offer, and it would likely be a 3 sedan.
I intend to get a Miata in a year or so as a second car.
Fortunately, my Fit is very healthy going on 11 with 86K miles.
Current 2020 CX-5 owner here, came from a Volvo XC70.
The Mazda has impressed me. I loved my Volvo (unfortunately, it didn’t love it’s piston rings). But I don’t feel like I downgraded at all with the Mazda. It’s really well built and I’m impressed with the engineering and build quality. It’s been returning good gas mileage as well (27-29 hwy). The Mazda dealer has treated me way better than the local Volvo dealership (which coincidentally also sells Mercedes). I’d happily buy another Mazda. It makes perfect sense why they are successful.
I have a soft spot for Mazda and I want them to succeed.
Growing up we had an 89 626 that we took everywhere. Disneyland, Yosemite, Northern California, Northern Mexico, the daily commutes to school. That thing never broke down. Also, my first car was a 1990 Ford Probe which was basically just a Mazda in Ford clothes.
That being said, nothing in their current lineup excites me. I don’t need or want a Miata and the rest of their offerings are meh. But seeing they’re doing well makes me happy!
90s Mazda maybe, but current Mazda I just don’t get the hype. Yes they have a nice red, but from what I’ve read their paint is thinner than usual and starts having issues earlier. Also I guess the handling but they’re still SUVs so it’s not like the usual buyer is running the tail of the dragon in these.
The Miata is it’s own thing, and that’s cool but I just don’t get the rest of it, they have the 3 Sedan and then just a bunch of SUVs. Of course that’s why they’re making money, as everyone’s buying SUVs, but again I miss 90s Mazda, the MX-6, the RX-7, the MX-3 with a 1.8 liter V6! The Millenia with a Miller cycle, the Autozam AZ-1. Just compared to all that, current Mazda is just bland boringmobile appliances, like a hipster grown up and working a corporate job, that meet each other in some time loop and the hipster is like, what happened to you man? You used to be cool.
So your entire complaint comes down to thin paint and lots of SUVs?
Not so much complaints, just my reasons for not interested in them. Obviously they’re doing well so good on them, but from what they were, to what they are now it’s kind of disappointing to me. Hopefully their success will allow them budget to do some craziness like they used to and make the RX-Vision or something like that.
All of them look terrific, with the older CX-5 bringing up the rear. That’s a big plus for me.
It’s hard to compare really any line up from the 90’s to what is out there now. Obviously pretty much everybody is focused on the SUV (here in the states at least). I have a 24 Mazda3 turbo hatch and that little thing is pretty darn great. Not a hot hatch by any means but you can lay some serious speed on quick. Doesn’t have the theater of the old Mazdaspeed3s of course. I miss the Mazda6 as that was a really good looking car but again, how are sedans holding up here in the states? Ford dropped everything from its line up along with a ton of others. Though it seems like manufacturers keep trying which is always good
Your ‘member berries are very strong and I applaud the dedication! Mazda had such an engineering can-do spirit during the bubble era and I always wonder what we would’ve had if those sweet yen hadn’t been spent on more of that versus creating a bunch of dead brands a la Eunos, ɛ̃fini, Amati, and Autozam. Marketing bested Mazda in this aspect as they had differential products in many segments, but couldn’t capitalize on them because they couldn’t sell them.
The negatives in key areas led it being mid pack in many reviews: MX-3 let down by it’s handling/interior; 929/Millenia by it’s power/size/prestige; 626 by it’s size/power; etc.
Civic/del Sol Si/VTEC > MX-3 GS
Integra GS-R/Prelude Si > MX-6
Accord/Camry > 626
Maxima/ES300/RL > Millenia
GS300/Legend > 929
It also begs the question if Ford didn’t have a strong grasp on Mazda by the late 90s, would they have survived (such as Isuzu/Suzuki into the 00s)? Even now the Miata is fighting off the BRZ/86 twins for better lightweight sports car (what’s a roof provide but a little bit more space?) I’m glad we still have the 3 hatch as it gives me something to eye in traffic. Also, that Capacitor tech in the mid-teens 6s was amazing for fuel economy, but also broke frequently and caused battery issues.
But but….we love flaws here at The Autopian and again I agree with you on the desire for more weirdness in the marketplace! If I can find a minty NX2000 I’m all over it now, but I wasn’t of buying age then.
I still think a Honda/Mazda is the best merger. FR halo platform (Miata featherweight w. NA engines; Honda S-series lightweight with smaller turbo/higher RPM engines; RX-7 hatch welterweight sports+ with a turbo rotary; RX-9 middleweight 2+2 GT with Turbo I6 from CX-9; Acura NRX 2+2 LC-fighter – undercut 911).
After a search of different brands, focusing on hybrid EVs, I wound up with an ICE Mazda CX-50 2.5 Turbo. It had the features I wanted, a pleasing combination of physical controls, the handling and performance I liked and a price I was willing to pay. I even kinda like the dial and button screen infotainment interface compared to trying to hit those small targets on a touchscreen while driving. I was going to wait for the hybrid, but based on reviews and that it was a RAV4 hybrid system, I decided to stick with the ICE. If I’m buying a Mazda, I want a Mazda drivetrain.
We got a 2016 CX-5 when my wife hit a deer with her CR-V. That car was great, only complaints were that it was loud and a bit underpowered, both things they addressed in the updated model. Gave us 70k completely trouble free miles, and drove way better than I would expect for a crossover. Even she commented on that, and she’s far from a gearhead.
She’d probably still be driving it (or a newer version) today if we didn’t need more space with kid #2 on the way. When we were buying the CX-90 was just hitting lots, and I was leery of buying a brand new platform/powertrain in the first year. Judging by reliability reports may have dodged a bullet there.
I clicked on the link to the “weird” Mazda MX-30 to see what I had forgotten. Kind of a cool idea. The most interesting thing is in the comment section where this gem is near the top: “Mazda serves us attractive, fun to drive, high quality cars with a unique twist. Sadly I think they will go bankrupt within the span of 10 years unless they turn their full weight and commitment to EVs. Hybrids made sense 20 years ago. They make little sense today, and zero sense in three years.”
Not sure who thought hybrids made sense 20 years ago but not today? (I do know, but I’m not attaching their name to their quote.) Looks like Mazda will survive a few more years and they were the smart car company not to try to force EVs onto the public without demand. We are not Norway, nor is most of the world. We are a long way from an EV dominant culture.
We brought home a CX90 PHEV over the holidays. In the Chicago market there was over $10K on the hood to lease, so we took advantage of that. So far getting about 18-20 miles per full electric charge, expecting that to improve as the vehicle breaks in and the weather improves this spring.
The CX90 drives smaller than its size, is quite nice (as it should be at its price point) and so far so good on ownership.
Based music choice. TOTBL is one of my favorite albums.
I hope not to be in the car market for a very long time … but if I am, I hope I can find a CPO CX-50 exactly like the one in the top shot.
I buy Mazda to avoid CVT transmissions. I have a 2013 Mazda5, a 2003 Miata 5MT, a 2017 Fiata AT, and just parted ways with a 2021 Mazda3 AT. Used to drive 2005 Mazda6 with the hatchback. Long ago we had a 323 and a 626. These cars are great to look at, great to drive, reliable, efficient, and fun. And the Auto in manual mode is excellent.
I kind of love that Mazda is a bit old school in some of their ways (more so probably down to lack of money compared to the big boys) as I do enjoy having the 6 speed auto versus a CVT. Now could the 50 use an extra gear or 2? Absolutely. But in the grand scheme of things, Ill take it over the CVT nonsense
I can’t consider Mazda for anything other than a Miata, I’m afraid. I like sedans and the only one they offer is the 3 with no hybrid option. It’s just not for me. But I suppose few manufacturers do make anything for me these days.Wait, am I the problem?
99% electric cars- Norway.
World’s largest sovereign wealth fund powered by fossil fuels- also Norway.
Isn’t Signature Mazda in the Richmond Auto Mall (YouTube clip) in BC? Any sales there don’t count!
Yeah right? I thought it was Virginia.
We can’t include Canadian sales stats because it’s completely different up there.
I just came back from Richmond and saw not only my first Hummer EV, but 3 of the damn things. It’s definitely different.
I’ve bought three brand-new cars in my life: a 2007 Hyundai Sonata, a 2015 Subaru Outback, and a 2020 Mazda CX-5. After the Hyundai and Subaru, I was done driving cars that felt like marshmallows on wheels. I wanted something that was actually fun to drive. Enter the CX-5 Signature.
First off, it looks amazing—inside and out. The interior isn’t stuck in a black-and-gray rut, and the exterior comes in the most gorgeous red I’ve ever seen on a car. The styling? Easily the best-looking crossover out there. And then there’s the drive. That turbo engine? Chef’s kiss. It’s like I finally upgraded from a go-cart to something that actually makes me want to take the long way home.
When I daydream about a “perfect” replacement car, I always circle back to the same things: ventilated seats, a heated steering wheel, decent cargo space, and some color in a stylish interior. But here’s the problem—nothing else in the CX-5’s price range comes close. To get all that, I’d have to shell out luxury car money (Volvo, Genesis, Lexus), and I’m just not about that life.
I even considered moving up to the CX-70 or CX-90, but the CX-5’s tight turning radius is unbeatable for how we use it. After months of shopping and fantasizing, I realized I’m already driving the best car for me. The only thing that might change my mind is a 2026 CX-5 PHEV. Maybe.
Mazda’s cars are drop-dead gorgeous, inside and out. They offer interior colors that aren’t just black or grey and they’re just as reliable as Toyotas. Plus, the buying experience at Biggers Mazda in Elgin, IL? Unreal. We were in and out with our new car in 58 minutes. Faster than most pizza deliveries.
It’s no surprise to me that Mazda is breaking records!
Well, I’m sold! These are all good reasons, although I’d argue your pizza deliveries in your town are way too slow.
I’ve had 5 Mazdas: a 1986 626, 2005 3, 2008 CX-9, 2016 6, and a 2016 CX-5. For me, Mazda’s cabin ergonomics (aside from infotainment) and driving dynamics suit my style, as does their exterior styling. I’d still be driving a Mazda but a 100 mile round trip commute in LA makes a BEV a necessity for as long as CARB’s HOV lane incentive remains active.
Also, seconded on Soul Red the best automotive red, especially when the sun hits it.
The politics of EV incentives are not good even in Norway. Money that could have been spent on improving public transportation was instead spent on rich people who commute to the city adding an additional car to the garage.
Public Transit in Norway isn’t good?
Says who?
Have you even been to Norway?
Reality check: I’ve been to Norway. Norway’s public transit systems are considered among the best in Europe.
Yeah, setting aside the issue of how they got there (sovereign wealth from oil sales played a role as someone noted above), in my very limited experience from a short visit Norway’s public transit is top notch (there’s a friggin’ bullet train from Oslo airport to downtown, when your average US city is lucky if there’s a direct bus!!) and the quiet, clean air of a city with almost no ICE vehicles is REALLY pleasant……especially if you are biking by on the extensive bike trail network that tons of people use. I was shocked at what a difference the EV dominance made in terms of sound levels. And when I did see an ICE vehicle it was generally something awesome, while all the moving appliances were EVs. They seem to have just put big money into all the clean transport options and I’m hard pressed to find the downside here (again, setting aside the rather big question of how it was paid for and whether anyplace else could replicate it).
They are playing with house money because of the oil fund, so it matters much less how efficiently or fairly the money was spent. Still there are always opportunity costs.
https://www.vox.com/future-perfect/23939076/norway-electric-vehicle-cars-evs-tesla-oslo
I loved my Mazda3, rebadged as Mazda33. The 2.0 was great and it never had problems like the 2.3. I liked the Zoom-Zoom so much I robbed a Z-Z licence plate frame off a press car! If you are trying to understand the attraction to Mazda do not start with something that starts CX. It began long before that!!
I also forgot to mention it’s on a C3 Volvo platform. Perceived Volvo safety at a Mazda price……nice
The Mazda CX5 with 6MT was on my list years ago when car shopping, but I couldn’t, for the life of me, find a manual transmission vehicle to test drive at ANY dealership within a 4-hour drive of my home. And most claimed they couldn’t even order one. So that ended there.
But since the Mazda3 remains one of the few remaining 6MT vehicles: it remains on my list of possible next cars by default.
I think it’s also worth noting that Norway is a very wealthy country overall and can afford to be early adopters thanks to their exports of oil. But even so, good on them for doing something worthwhile with their oil money.
Absolutely considering a CX-50 as my next car, just not sure if I want to spend the additional money for the Hybrid. I used to buy Subarus but they’ve lost me with their CVT’s and ridiculously underpowered engines.
Well I currently own one and would definitely get another. If the timing had worked out better, there’d probably be a CX-9 in my wife’s spot in the garage next to my 3. Her father was and is a big Mazda guy as well, he currently owns an older 3 (cloth seats, stick shift of course) and used to own an RX-8 (also 6 speed) which he commuted in through the Northern Virginia suburbs like a madman.
It’ll be a while before we’re in the market for a new vehicle but I may be in the mid-life crisis phase by the time they release a new rotary sports car so who knows.
The vibes? They’re immaculate. The inline 6s are still too new to know, but their 4 cylinders are up there with the most reliable engines on the market today. I’m sure they’ll get the PHEV issues ironed out with a couple model years under the belt. They should keep doing what they’re doing, though I’d love a rotary range extended EV.
Buy Mazda? Bring back the RX-7 and I’ll think about it.
I’d give Mazda a look. I loved my old NB Miata dearly, and I’ve generally liked how Mazda has positioned themselves as slightly upmarket, but without much of a price premium by being really smart with where they put their premium touches.
That said, their take on infotainments has historically been purposely obtuse and annoying. Forcing you to use the little joystick to navigate CarPlay because “touchscreens are distracting” is stupid when I spend way more time looking at the screen trying to scroll over to my podcasts when I could just get there in one tap on any other CarPlay screen.
I know they’ve changed that in the more recent models, but I haven’t played with their newest systems.
The new CX-5 at least has a touchscreen. Their infotainment system is almost there and works really well if you mostly listen to things from your phone. I wish they would make it easier to get to the radio and switch radio stations.
Mazda sold the MX-30 EV here in 2023 though – they just didn’t give us the range extender one that would have helped us get over it’s abysmal 100 mile range.
I would love to see them try to launch Amati again, though. Not that you can tell I’m biased based on my username.
If you’ve been holding out for a Miller-cycle engine, then you can get one right now in the VW Jetta. Otherwise, if it has to be a Mazda, then you may be waiting for a long time.
A Miller isn’t a prerequisite, but it was certainly fun to see people’s faces when that supercharger whine came out from under such an unassuming car’s hood.
I just like the idea of a car company that clearly wants to make a nice AND fun to drive car AND is on the affordable side of things. Much as I like my GTI, a VW asks you to pick two of those at most.