Mazda CX-50 Hybrid Sales Plummet Due to Trade War

Mazda CX-50 Hybrid in front of a dealership

Montreal, Canada, September 27, 2025

News Summary

Mazda’s CX-50 Hybrid, once a promising competitor in the Canadian SUV market, is facing significant sales challenges due to a recent trade war. The imposition of tariffs has led to a drastic drop in available inventory and sales figures, with August 2025 recording only 423 units sold, down 60% from the previous year. The model, which features a 2.5-liter hybrid engine and has been well-received since its introduction, now faces uncertain prospects as Mazda hopes for improved market conditions through trade negotiations.

Montreal, Canada – The ongoing trade war is causing significant disruptions to Mazda CX-50 Hybrid sales in Canada, a vehicle that was emerging as a critical competitor in the SUV market. In March 2025, the Mazda CX-50 Hybrid saw a surge in popularity, yet tariffs imposed in early April led to a suspension of exports to Canada, threatening its market position.

The Mazda CX-50 Hybrid, introduced in November 2024, features a 2.5-liter 4-cylinder hybrid engine delivering 219 horsepower, with an impressive fuel economy of approximately 38 miles per gallon combined. The model has been priced starting at $33,970, showcasing high-quality interior materials and a 10.25-inch infotainment display. Initially, the CX-50 Hybrid represented 28% of total CX-50 sales before concerns regarding tariffs began to affect availability and market penetration.

The Mazda CX-50 was launched in Canada in May 2022, with the first production stemming from a joint plant in Huntsville, Alabama. By the end of 2022, Mazda sold 2,365 units of the CX-50. However, this number paled in comparison to popular competitors, such as the Honda CR-V and Toyota RAV4, which sold 6,563 and 13,621 units, respectively, over the same period.

Quality improvements in production increased capacity by June 2023, allowing sales figures to rise to 5,711 units that year and ultimately doubling to 10,759 units in 2024. The introduction of the CX-50 Hybrid in late 2024 coincided with promising sales growth of 67% in the first quarter of 2025 due to the broader appeal of the hybrid model.

However, the stability took a downturn when the U.S. government implemented a 25-percent tariff on cars and parts from abroad on April 3, 2025. Canada quickly reciprocated with its tariffs on non-compliant imports. Consequently, Mazda was forced to suspend CX-50 exports to Canada and paused imports effective May 12, 2025, leaving dealerships with dwindling stock.

Major dealers such as ALBI Mazda Mascouche reported fewer than 10 CX-50 units remaining by mid-August 2025. As Mazda Canada faced restricted inventory levels across the country, the sales figures reflected the consequences: only 423 CX-50 units were sold in August 2025, marking a troubling drop of 60% compared to 1,048 units sold in August 2024.

Competition remains fierce, with the Toyota RAV4 alone accounting for nearly 33% of the company’s Canadian vehicle sales in August 2025. Before the tariffs complicated import processes, Mazda had projected that the CX-50 could have represented 17% of their sales in Canada. The projected sales dropout reflects challenges that the brand must overcome to restore its market standing, especially in the hybrid segment.

As the market adjusts, Mazda hopes that ongoing trade negotiations will help stabilize the situation and allow for a smoother flow of the CX-50 Hybrid into Canadian dealerships.

FAQ

What are the key features of the 2025 Mazda CX-50 Hybrid?

The 2025 Mazda CX-50 Hybrid features a 2.5-liter 4-cylinder hybrid engine with 219 horsepower, achieving a fuel economy of approximately 38 mpg combined. It has a starting MSRP of $33,970 and includes a 10.25-inch infotainment display and high-quality interior materials.

When was the Mazda CX-50 first launched in Canada?

The non-hybrid CX-50 was launched in Canada in May 2022, with initial production from a new joint plant in Huntsville, Alabama.

How did the sales of the CX-50 change over the years?

By the end of 2022, Mazda sold 2,365 units of the CX-50. Sales increased to 5,711 units in 2023 and doubled again to 10,759 units in 2024. However, due to tariffs, sales dropped to 423 units in August 2025, a 60% decline compared to August 2024.

What prompted Mazda to suspend CX-50 exports to Canada?

On April 3, 2025, the U.S. imposed a 25-percent tariff on cars and parts from abroad, which Canada responded to with its own tariffs on non-compliant imports. This forced Mazda to stop CX-50 exports to Canada following their suspension of imports on May 12, 2025.

How did the tariffs affect Mazda’s market position in Canada?

The ongoing tariffs have led to limited inventory across Canada, significantly impacting sales of the CX-50 and allowing competitors like the Toyota RAV4 to dominate the SUV market.

Key Features Chart

Feature Details
Engine 2.5-liter 4-cylinder hybrid engine
Horsepower 219 HP
Fuel Economy Approximately 38 mpg combined
Starting MSRP $33,970
Infotainment Display 10.25-inch display
Interior Quality High-quality materials

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Additional Resources

STAFF HERE HUNTSVILLE WRITER
Author: STAFF HERE HUNTSVILLE WRITER

The HUNTSVILLE STAFF WRITER represents the experienced team at HEREHuntsville.com, your go-to source for actionable local news and information in Huntsville, Madison County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Panoply Arts Festival, Rocket City Brewfest, and Huntsville Comic & Pop Culture Expo. Our coverage extends to key organizations like the Huntsville/Madison County Chamber of Commerce and HudsonAlpha Institute for Biotechnology, plus leading businesses in aerospace, defense, and manufacturing that power the local economy such as Boeing, SAIC, and Mazda Toyota Manufacturing. As part of the broader HERE network, including HEREBirmingham.com, we provide comprehensive, credible insights into Alabama's dynamic landscape.

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