Mazda’s Vision for the Future of Japanese Car Manufacturing: The Ambition Behind Monozukuri Innovation 2.0

As the car industry navigates what many are calling a once-in-a-century period of transformation, manufacturing floors worldwide are experiencing unprecedented waves of change. Against this backdrop, Mazda held the Multi-Solution Briefing on March 18, 2025, to share the Monozukuri Innovation 2.0 initiative for the age of electrification. Managing Executive Officer Taketo Hironaka, a veteran with decades of experience on the front lines of Mazda's production, was among those speaking at the event. Hironaka looks back at the achievements of Monozukuri Innovation 1.0 while sharing the ambitions of Monozukuri Innovation 2.0 and the future of production.

Taketo Hironaka. Joined Mazda in 1988 and worked in the Manufacturing Division for nearly 30 years. From 2016 served as Executive Vice President of Mazda Powertrain Manufacturing (Thailand) Co. Ltd., and as President and CEO of the same company from 2018. After returning to Japan, he was responsible for production technology and logistics, and now serves as Managing Executive Officer overseeing Production Engineering, Global Quality, Carbon Neutrality, and Cost Innovation. He is currently the proud owner of a Mazda CX-80 and an Atenza (MAZDA6).

Not so long ago we used the term "CASE"* to symbolize areas of transformation in the car industry. It represents this idea we should be delivering electrification, intelligence, and multiple value in the vehicles we manufacture. At the same time, we also need to take action on issues that affect society, like advancing decarbonization across are business, not only for cars but across the whole production process. Today's car manufacturers are expected to demonstrate how we’re contributing in these areas.

*CASE is an acronym for Connected (IoT for automobiles), Autonomous (autonomous driving), Shared & Services (from ownership to sharing), and Electric (electrification). It refers to technological advancements that will usher in a new era not only for the automotive industry but society as a whole.

Exactly. And while many people are still interested in the cars themselves, there’s a growing number of drivers who choose cars based on how aligned the brand is with their own environmental values. We need to deliver value beyond the specs and think about how we can enrich people's lives, not just whether a car is good or bad. On top of that, as we develop and produce cars with electrification, intelligence, or carbon neutrality in mind, we’re expanding the variety and the cost, but we need to ensure we’re delivering reasonably priced products to customers.

Energy infrastructure, regulations, customer needs, wants, and lifestyles vary across global markets. To meet these expectations while balancing carbon neutrality goals with business growth, car manufacturers need to provide a full spectrum of options, from traditional gasoline-powered engines to battery EVs and hybrids. While the major players can use their abundant assets to move in every direction at once, a niche player like Mazda needs to find our own way of competing. And we need to consider how we can compete with the remarkable rise of EV manufacturers, not only in Japan but also in China.

First, I’d like to talk about the Monozukuri Innovation initiative, which we launched in 2006. Given the size of Mazda as a company, producing a variety of models inevitably reduces production efficiency. To compete with bigger manufacturers, we had to consider how to improve efficiency. The answer was effective utilization of our assets. In practical terms, it meant optimizing usage of our development workload and production resources and keeping production lines operating at 100%. This led to our “mixed production” system, one where different models are produced on a single line.

Mixed production in action. Multiple car models are manufactured on a single production line.

That's right. Traditionally, manufacturing processes were created by the production team based on the development team's designs. But with this approach, new production equipment needs to be introduced each time the vehicle model lineup expands, making it very inefficient. So, we've implemented a method called “bundled planning,” where the development and production teams work together to consider what kinds of cars should be released five or ten years in the future.

Normally, production wouldn’t have input when deciding a car's basic structure. However, we realized that if development and production worked together from the beginning and aligned processes and equipment, we could make the mixed production approach work. That was Monozukuri Innovation 1.0. Now, we have a range of different models being manufactured on the same production line. Not only is production efficiency good, but investment efficiency is also good because we can use the same equipment for a long time. With Monozukuri Innovation 1.0, we were able to implement this uniquely Mazda approach.

I imagine it wasn’t easy for either teams in the beginning. However, we had a complimentary initiative around the same time which helped. At the time, all new employees in factory and production technology would immediately transfer to the development department and learn manufacturing for three years. There was also another significant initiative which was distinctly Mazda in approach.

Whenever a car is designed, it starts as a clay model before being shaped into an actual vehicle. Naturally, these are highly confidential, and even within the company, designers would almost never share these with the production team members. But, after starting Monozukuri Innovation 1.0, designers began sharing the clay model designs with the production team. It enabled production members to understand the intention and considerations behind the design, which significantly changed how production equipment was constructed.

Exactly. And we've proactively continued with similar activities, not just with design but with the development department too. This has made it easier to find common ground, with development trying to understand the production process, and production trying to understand development's intentions. In the end, whether you’re a member of development, design, or production, we all share the common goal of creating great products and moving experiences. As an aside, both production and development departments work in the same building. I think this physical proximity, being able to consult with each other anytime, has also had a positive effect.

With Monozukuri Innovation 2.0, the basic concept of improving efficiency remains unchanged from 1.0. However, with electrification, intelligence, and software development, the range of diversity has expanded further. Within this context, Monozukuri Innovation 2.0 aims to achieve manufacturing with even greater flexibility and efficiency, while utilizing our accumulated assets, further evolving Mazda's unique strengths.

We're often asked why we don’t build EV-dedicated factories. The answer is simple: we don’t need to. We've already achieved mixed production with Monozukuri Innovation 1.0, and we're evolving it further with Monozukuri Innovation 2.0. One specific example is the adoption of Automated Guided Vehicles (AGV) that move freely within the factory. In our powertrain assembly lines, we've introduced AGV that can automatically adjust positions to install components in vehicles with different mounting positions, and they can also install EV-specific electric units.

Monozukuri Innovation 2.0 uses AGV for a flexible assembly line that can accommodate both battery EVs and gasoline vehicles. This improves operational flexibility and enables efficiency in delivering a variety of options to global customers.

Until now, we've primarily focused on efficiency within Mazda, but going forward, we're looking to build efficient manufacturing across the entire supply chain. After all, more than 80% of the parts used to make a car come from external suppliers.

The COVID pandemic. The complete halt of movement for parts, logistics, and people highlighted the vulnerability of the supply chain. We're working to optimize parts procurement and pursue efficiency throughout the supply chain, even in the area of software. As automotive diversity expands, the supply chain becomes increasingly complex, and reforms aimed at simplification are essential.

One initiative Mazda is already undertaking in supply chain structural reform is reducing electronic control devices, a component that increases with electrification. Previously, hardware was manufactured and software was installed at overseas suppliers, increasing inventory in the supply chain. Now, only software common to carlines is installed with overseas suppliers, and model-dedicated software is installed in-house through Factory OTA (over the air)  technology, a practical method of wireless communication. This has reduced inventory within the supply chain to a quarter while allowing flexible response to demand fluctuations.

We want to improve the speed at which we meet customer needs and wants, and we're working on shortening production preparation lead time by using digital twin technology. Using modeling and digital technology, we can design production lines virtually to check for potential interference between robots or inefficiency in movements, before mass production. When we set up a factory in the US during the COVID pandemic, we were able to significantly reduce preparation time by utilizing a digital twin.

With trends in the car industry and customer needs are changing faster every year, manufacturers have to respond accordingly. Improvement is not just about production itself, but also reducing time spent on preparing for launch. Traditionally, installing and adjusting programs would mean physically visiting a plant, but digital twin technology means production lines can be designed and assessed virtually, before implementation. Using a digital twin enables pre-verification on each production equipment as well as operation of the entire production line as a robot group. The outcome is a remarkable acceleration of mass production preparation.

To create a digital twin, you need digital data for production equipment. Monozukuri Innovation 1.0 is based on the idea of effectively using existing production lines rather than building new lines each time a new model is released. This naturally means that the know-how gained there and the digital data from installed equipment remain as assets.

And this is where Mazda's distinctive approach to car manufacturing differs from other companies and where our strength lies. Engineers from other companies visit Mazda's plants, and they're often surprised when they see our initiatives. They can’t believe that we’re really using mixed production or a digital twin. The production technology team has been working with digital databases for over 10 years now, and local manufacturing businesses in Hiroshima are stationed at Mazda, sharing digital technology. Initially, this was only a small part but I think it’s gradually expanding.

That’s right. In fact, we've been holding the Technology Exhibition for about seven years to share our in-house automation, digitalization, and carbon neutrality initiatives with our business partners. Since last year, we've also added element technologies used in production. The Technology Exhibition is held in Hiroshima, and last year, we had 1,000 visitors over two days. Many of our business partners have their own technologies, so we need to leverage each other's strengths. Plus, by sharing our technologies with our partners, we can elevate Japanese manufacturing as a whole.

The Technology Exhibition held in November 2024.

Just incredible. We’ve had inquiries about everything, from technical and cost issues to changes in work processes. At Mazda we make cars, but cars are made by people. That’s why we're expanding collaborations with our business partners to go beyond talent exchange to also include professional development.

Exactly. Whether in our past or now, Mazda is what it is thanks to the support of the people of Hiroshima. Initiatives like our Technology Exhibition or developing talent are ways to revitalize the local area and strengthen Japanese manufacturing. It’s not so much a way to give back as a way to push forward.

Everyday we’re hearing AI this and generative AI that, but I still believe that true creativity is a solely human endeavor. If we look at the manufacturing process, there are still areas where human involvement isn't necessary, and we can increasingly leave those to machines. However, only humans can take away the knowledge gained and apply it to creating new value. As you pointed out, to developing cars you need to develop people. Developing people is a never-ending process, and I hope for a future where we can keep building on these foundations, one layer at a time.

Absolutely. Even just looking at electric vehicles, I think Mazda’s will be completely different from other companies. I can't give details here yet, but I’m certain you won’t be disappointed.