Taiwan: Mazda claims depreciation-caused price reduction only 'temporary'

The China Post (Taipei) - A price reduction at Mazda Taiwan in the wake of the depreciation of the yen is only temporary, said the company yesterday.

The firm made the remarks after media reports that Mazda models will see a price reduction of anywhere between NT$10,000 and NT$40,000.

"This is only temporary," the carmaker said. "If the yen becomes strong or if the New Taiwan dollar weakens against the yen, we do not rule out lifting prices to their original level."

According to Mazda, a yen depreciation trend over the past two months has indeed given "breathing space" for Japan-made car distributors, who have suffered huge exchange rate losses over the past few years.

Yet the firm pointed out cost did not go down much, given the prices of raw materials and gasoline are still high.

"There is still a possibility prices will go back up if there is a change to the current downward trend," it said.

As for other Japanese car distributors, when asked whether they'll follow suit, they said not so fast.

"The yen depreciation has indeed provided alleviation for us. Yet due to lingering cost concerns, we won't lower prices," said Yulon-Nissan. "Instead, we'll have more promotional offers for customers to give them something back."

Hotai, which distributes Toyota vehicles, said it had planned to raise prices after the Lunar New Year period. It has canceled that plan in the midst of the yen decline, it said.