Mazda to expand Chinese dealer network

Gasgoo.com (Shanghai July 18) - Yamada Noriaki, chairman and CEO of Mazda China, has announced his intent to open 50 new 4S style dealers in China, the Beijing News reported today. Mr. Yamada also added that Mazda China hopes to increase the ratio of auto parts bought in the country, as well as investing in more production sites overseas.

The decisions are mainly due to the supply shocks caused by the natural disasters in Japan earlier this year. Meanwhile, Mazda will also begin production of the Mazda3 (pictured) and CX-5 in China, as well as increase the number of dealers in the country from 323 outlets to 370.

Although the manufacturer's 2010 sales target of 240,000 vehicles sold in the country is not considered high compared to other foreign manufacturers, China is still by far Mazda's largest overseas market. Currently 75 percent of Mazda's production is done in its home country of Japan. Mazda manufactured 220,000 vehicles in China last year, compared with 100,000 and 40,000 vehicles made in Thailand and the US, relatively. "Mazda hopes to expand its markets overseas," Mr. Yamada said, adding that China was by far their premier market of choice.

In anticipation of poor market conditions in the latter half of the year, Mazda revised its official sales target for this year from 280,000 vehicles down to 260,000 last week. However, Mr. Yamada said that the manufacturer might still manage to meet the old target.