Mazda's Chinese sales fall 6% in August

Gasgoo.com (Shanghai September 8) - Mazda sold a total of 16,539 vehicles in China last month, Caijing reported today, citing official statistics from the manufacturer. The sales figure is six percent lower than the amount Mazda sold last August. Mazda will reportedly unveil a series of new promotional offers to prevent sales declines in the last few months of the year.

Mazda has sold 135,000 vehicles in the country from January to August. Among its two joint ventures, FAW Mazda sold 79,000 vehicles during the eight month period, 11 percent less than how much it sold last year. Meanwhile, Changan Mazda sold 56,000 vehicles during the same time frame, equivalent to year-on-year growth of 17 percent.

Mazda China Board Chairman and CEO Noriaki Yamada attributes low sales last month to poor market conditions. "Despite the popularity of the 2012 Mazda6 (pictured), somewhat declining sales of other models caused our total sales volume to be six percent lower [than last August]," Mr. Yamada said.

Mazda's model line up in China is not only outdated, but also very limited. FAW Mazda's Mazda6 (pictured) remains the manufacturer's most important model. A large problem for Mazda is the speed with which it brings out new models and model updates in China, which is far slower than that of competing joint ventures enterprises. As a result, Mazda is forced to keep reducing prices in order to maintain its market share. For example, the 2012 Mazda6, which made its debut last month, now carries a price tag of 135,800 yuan ($21,459), a full 50,000 yuan ($7,901) lower than the manufacturer's suggested retail price.

However, not all news is bad for Mazda. Late last month, Ford CEO Alan Mulally confirmed that the proposal to split up the Changan Ford Mazda JV had received official government approval.

Finally, Mazda has plans to expand its dealership networks for the FAW Mazda and Changan Mazda JVs to include over 420 outlets by the end of the year. The two JVs currently possess a total of 388 dealerships active in the country.