The Mazda CX-70AndCX-90 Despite the technology being available overseas, there are still no plug-in hybrid (PHEV) options in Australia, but the brand’s local boss believes the company has “ample coverage” of PHEVs at the top end of the SUV market.
In conversation with Daily SparkzMazda Australia managing director Vinesh Bhindi said the brand is prioritizing its upcoming electric vehicles (EVs) and existing PHEV models, rather than adding further versions of the relatively niche CX-70 and CX-90 models.
“CX-70 and CX-90, these products have this (PHEV) technology and we were on track to achieve this compliance from a system perspective to the ADRs that were underway, but what we thought was appropriate was that given that we offer (PHEV) technology in the CX-60 and CX-80, we have adequate coverage of the technology in (these) two cars,” Mr Bhindi said.
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“But when our regulators have taken a very clear position, particularly when it comes to the FBT benefit they stopped for PHEVs in March last year, we think we need to focus on battery electric vehicles.”
“If you think about how Mazda is going to tackle NVES costs, I say it is a secondary business cost that challenges us as a brand and we have three options to address that or ensure costs remain minimal,” Mr Bhindi continued.
“The first way is to offer the technology that has the greatest and greatest potential for earning credits – those are the two battery electric vehicles (Mazda 6e and CX-6e). The second way is, and an option that exists in other regions…, to purchase discounted credits if they are available – and we believe they will be available to us.”
“The final option is to pass the cost on to the market through price. We want to leave that as our final option – we believe the first two options will give us the opportunity to balance the books behind the scenes, balance the portfolio; because this is a transition, it’s not going to happen overnight – so we need to make sure we have all options available to all customers and (their) needs, rather than starting to reduce supply, change supply, cut supply, then we have one disappointed customers.”
“And to add even more,” Mr. Bhindi continued, “these two electric cars (models) that we are introducing… VFACTS is good at giving segments based on the size of the vehicle, but if you put the size of a vehicle aside and measure consumer affordability on a scale, the price at which most cars sell for a mom and dad (private) buyer is actually between $40,000 and $60,000, probably more narrow.” $45,000 to $55,000, and that’s where a good portion of the sales opportunity lies, regardless of size.
“So we will be competing in the larger (mainstream mid-size) segment, which is the most affordable from a budget perspective… and we have two strong offerings in that segment (in the pipeline) and that should allow us to earn as many credits as possible as long as the acceleration or cadence of battery electric vehicles continues to be positive,” Mr Bhindi said.
“So hopefully that gives you some sort of high-level strategy from Mazda (Australia’s) perspective. Some brands are not going to have all of those options and they’re going to have a different playbook in terms of complying with regulations or paying fines and still giving customers the options that they want.”
This is not the first time Mazda Australia has said it is prepared to endure NVES fines.
In October 2024, ahead of the federal government’s New Vehicle Efficiency Standard (NVES) coming into force on January 1, 2025, Mr Bhindi said: “We will continue to offer what the market wants, what the consumer wants, regardless of the impact of fines etc. because ultimately we are here to serve our consumers.”
At a global level, Mazda Australia and its global parent company are committed to offering a range of powertrain options to meet global emissions regulations, including battery electric (EV), hybrid (HEV), mild hybrid (MHEV) and pure combustion engine (ICE).
The new 6e and CX-6e were built in collaboration with Chinese partner Changan, with Mazda’s in-house electric vehicles still on the way and expected in the coming years. Mazda’s first self-developed hybrid will be based on the new generation CX-5 and will be launched in 2027.
In the first year of NVES, Mazda Australia collected 508,517 penalty units based on new vehicle sales in 2025. Brands such as Mazda that have a provisional emissions level above zero in 2025 must trade their units with another company by December 31, 2027 or risk a $50 penalty multiplied by their final emissions level in February 2028.
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