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Home Industry

Japanese giants teaming up to work on their weakest links

Toyota and Mazda might be Japan’s leading lights in the car industry, but they’re working together to give customers better offerings.

Jordan Mulach by Jordan Mulach
18 June 2025
in NEWS
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Speaking to Autoblog, Mazda CEO Masahiro Moro said his brand is increasingly reliant on Toyota as electrification comes to the fore, citing a rise in threats from manufacturers from other nations.

“Our collaboration is broader than you might think of it,” Moro said.

“We are doing it because of global competition. In the era of electrification and of software-defined vehicles, we have to go after too many things at the same time.

“We are moving from an automotive industry into a mobility industry. That’s a game change and you have to help each other to save your resources.”

Moro noted that while it was easier for car brands to develop and produce their own internal combustion engines, increased demand for hybrids and full electric vehicles has reduced this as they “have the same characteristics, almost”.

Mazda’s need to rely on a big player like Toyota is unsurprising. Last year, Mazda sold 1,277,578 vehicles (up 2.6 per cent on the year prior), while Toyota managed 9,308,122 sales through its core brand.

The hybrid pioneer recorded more than 4.1 million sales of its traditional hybrid vehicles alone. It’s already given Mazda a leg-up with its hybrid tech, via the Chinese- and US-market CX-50, which uses the electrified powertrain from the Toyota RAV4.

Why Toyota holds key to new Mazda RX-7

US versions of the CX-50 are built in Huntsville, Alabama in a factory joint-operated and owned by Mazda and Toyota, with that market’s Corolla Cross also being produced in the plant.

The two carmakers are also a part of a Japanese alliance – along with Subaru – looking to save the internal combustion engine, last year committing to the development of lower-emissions powertrains, with hybrid assistance and synthetic fuels in focus.

At the time, the three brands said they have “a deep understanding of their customers’ diverse lifestyles” and would develop ICEs which “not only represent their respective brands but also cater to their customers’ unique needs and preferences”.

It’s worth remembering Toyota owns 20 per cent of Subaru and five per cent of Mazda, while Japanese rivals Nissan and Mitsubishi are a part of their own alliance with French brand Renault.

Can this new alliance save the internal combustion engine?

Jordan Mulach

Jordan Mulach

Motoring Editor
Jordan Mulach is an Australian motoring journalist with a background in motorsport reporting. Now a leading automotive news writer, he combines industry expertise with a passion for cars, sim racing, and all things motoring.

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