Mazda's president believes that petrol engines will still power 80 to 90 percent of the world's cars, even in 20 years time, and he remains confident it can grow without electric vehicles.
The comments from President Takashi Yamanouchi contrast with the strategy at Japanese rival Nissan, which is banking heavily on its Leaf electric car, one of the first mass-produced EVs on the market.
Yamanouchi said Mazda's efficient petrol engine, called ‘Skyactiv’, will be a pillar of its growth strategy as the Hiroshima-based manufacturer seeks to boost sales in emerging markets, where electric vehicles and hybrids aren't expected to be as popular as in developed nations.
“Skyactiv will be one of the drivers of our growth,” Yamanouchi told reporters at a Tokyo hotel, where Mazda showed off its facelifted Demio (Mazda2) for the domestic market.
Mazda currently has no hybrid vehicle in its lineup, although it plans to start selling one by 2013. Hybrids still require petrol engines, and Yamanouchi said they can be counted as part of what will be the 80 or 90 percent of cars that aren't electric.
Nissan has sold about 8000 of its Leaf electric vehicles around the world, more than half in Japan, since its gradual global rollout started in December.
That's a tiny fraction of the world vehicle market. But Yokohama-based Nissan is targeting production of 250 000 electric vehicles a year globally by 2015, stressing that concerns about global warming and pollution are growing.
Mazda began selling the Demio in Japan on Thursday, offering a version packed with Skyactiv technology. It is targeting 6000 overall Demio sales a month.
Mazda said it was not planning to sell the Skyactiv Demio overseas, but was planning the green technology for bigger models.
Mazda is building engine and vehicle assembly plants in Mexico for small cars, such as Mazda2 and Mazda3, for markets in Central America and South America.
Mazda, which has lost money for the last three fiscal years, is struggling to assert its brand without counting on its longtime partnership with Ford.
No replacement partnership has been announced, and Mazda has repeatedly said Ford remains a key partner. -Sapa-AP