Mazda Sales Declines 20% in First 8 Months in China

“Sales has declined 20.8% over last year Jan. to Aug. accumulate. It is lamentable market performance for us. The situation we are facing is very stiff right now.” Inamoto Nobuhide, new chairman of Mazda (China) Enterprise Management Ltd., told the reporter of yesterday.

According to Mazda sales report yesterday, the company sold 106.8 thousand vehicles in the first 8 months in China, which decreased 20.8% over the performance of the same period of last year. Particularly, Changan Mazda sold 33,562 totally, which decreased 40.3%. From last July to now, Mazda sales has declined in 12 months, and it has realized growth this Jan. only.

Compared with Toyota, Honda or Nissan, Mazda market performance is still unattractive after several years business operation in China. The company has sold 187.1 thousand vehicles in China in 2012, which has declined 12.9%.

However, Inamoto Nobuhide has confident to turn the situation around in 2013. This July, Inamoto Nobuhide and Nobuhiko Watanabe have taken chairman and CEO of Mazda China representatively. Yamada Noriaki, the former CEO & chairman of Mazda, has retired. Inamoto Nobuhide said that he is a member of Board of Directors of Mazda Motor Corporation, which is more powerful than Yamada Noriaki, who is a managing director of Mazda. It marks that Mazda takes Chinese market seriously.

According to plan, Mazda will introduce 7- 10 products into Chinese market in the next 3 years, and number of dealers will increase from 420 now to 600. The company will build its reputation by power technology reformation. And sales goal of 2015 will reach 400 thousand.

Sales system reformation is the key factor for Mazda rejuvenation. Inamoto Nobuhide said frankly “Marketing strategy for Mazda in Japan and North America is price reduce and discount promotion. But we do not know much about what Chinese customer want. ”

Sales of the first 8 months has only achieved 53.4% of annual sales goal, but Inamoto Nobuhide does not change the 200 thousand goal. Because Changan Mazda has launched a new SUV in August, and it is expected 20 thousand sales increase. Besides, FAW Mazda will launch a new model AZENDA at the end this year.

Analyst who watching Mazda for long time said Mazda changes its traditional strategy because of global business performance pressure. With the depreciation of Japan Yen, Mazda has ended its loss and realized 34.3 billion Yen for the 2012 financial year (April 1, 2012- March 31, 2013). However, Mazda needs to increase its oversea market share as a company setting manufacture and sales in Japan.