Mazda plans new JV with FAW for expansion in China

Shanghai, May 19 (Gasgoo.com) Mazda Motor is planning to set up a new joint venture with Chinese partner FAW Group to boost sales and market share in China, now the world's largest auto market, media reported today.

The plan comes after Mazda and its partner Ford Motor are set to split their three-way joint venture in China with Changan Auto by operating separate JVs with the Chinese automaker. Meanwhile, Mazda's minor role in its partnership with FAW Group has slowed its expansion in the Chinese market.

"The two automakers [FAW and Mazda] are in discussions to deepen their cooperation, possibly a new joint venture to be set up in the future," the National Business Daily reported yesterday, citing an unnamed source.

The fifth-largest Japanese carmaker entered China in 2003 when it started making the Mazda 6 through a technical cooperation with FAW Group. A new venture will likely help Mazda to boost its sales and share in the fast-growing Chinese market.

"The Mazda 6 has achieved good sales but cooperating technically limits profit for Mazda," said an industry analyst. The new venture will give Mazda a big role in the partnership with FAW and speed up its growth in China.