Mazda3 offers quickest price-cuts in Chinese auto market

Mazda3 offers quickest price-cuts in Chinese auto market

Disputes between Mazda's two Chinese partners led the 1.6L Mazda3 to lower its prices within a week after the new sedan was launched.

Mazda3 was launched on 28th July, with the prices ranging from RMB 126,800 to 146,800. Yet, producers have already planned an RMB 8,000 price-cut for the full range of Mazda3’s effective the same week . The Local media has dubbed it as the "quickest price-cut in the history of the Chinese auto industry."

Mazda has two partners in China---Chang'an Ford Mazda, which produces the Mazda3, and FAW Mazda, which is in charge of selling the Mazda3. Chang'an Ford Mazda, the producer of the Mazda 3, is vying for a role in price-setting, but the FAW Mazda felt dissatisfied.

"Chang'an Ford Mazda is going too far," a sales manager from FAW Mazda told gasgoo.com in a private interview during the Fifth China Changchun International Automobile Fair this past July. The sales manager, who asked not to be identified, said the new 1.6L Mazda3 was a bit too expensive and would discourage customers.

FAW Mazda, after announcing the price-cuts, said in a statement that the discounts would widen the price gap between the 1.6L Mazda3 and the 2.0L Mazda, hopefully increase sales. The company is set to transfer the sales right of Mazda3 to Chang'an Ford Mazda next year.

In attempts to bolster their market share in China, Mazda has been utilizing its "Zoom-Zoom" tolken slogan. Only time will tell its effectiveness. Regardless, conflicts of interests between the Mazda3 and Chang’an Ford Mazda won’t go away.