Mazda has announced a strategic collaboration with Toyota that is expected to yield substantial cost savings for the Japanese automaker. The partnership aims to develop shared in-vehicle software and hardware systems, including the operating system, electronic control unit, and wiring harnesses. This synergy not only extends to the infotainment and driver display OS but also encompasses future battery-electric vehicles (BEVs) set to launch from 2027, which will reportedly feature in-vehicle systems 90% identical to those in Toyota models.
The move to collaborate on software and hardware development is a significant cost-cutting measure. Software development is a capital-intensive process, with some automotive manufacturers and parts suppliers allocating up to $2 billion annually to this endeavor. By teaming up with Toyota, Mazda anticipates saving hundreds of millions of dollars per year, potentially reducing development costs by an impressive 70% to 80%.
In the evolving landscape of automotive technology, in-vehicle systems and infotainment operating systems are gaining paramount importance. These systems not only enhance user experience but also present lucrative opportunities for carmakers to sell content and introduce new functionalities, such as advanced driver-assistance technologies. Boston Consulting Group predicts that software-defined vehicles will contribute over $650 billion in value potential to the automotive industry by 2030.
The collaboration between Toyota and Mazda has deepened over the years. Initially focusing on sharing powertrain technologies in 2015, the partnership has evolved to the extent that Mazda's current Mazda2 is essentially a rebadged version of the Toyota Yaris.
Regarding Mazda's electric vehicle (EV) strategy, the company aims to have seven or eight EVs in its lineup by 2030, constituting 25-40% of its global sales. These upcoming EVs will fall under the e-Mazda division, emphasizing a scalable platform for development and sales. The collaboration with Toyota is expected to play a pivotal role in streamlining Mazda's EV offerings and bolstering its position in the rapidly evolving automotive landscape.