Mazda sees Q1 sales in China slump 32.26% year on year

Shanghai (Gasgoo)- Mazda Motor (China) Co., Ltd. reported on April 3 that its retail sales in March dropped 22.8% over the year-ago period to 18,078 units.

Last month, FAW-Mazda delivered 7,629 vehicles with a year-on-year decrease of 24.51% and Changan Mazda saw its March sales slide 21.43% from the previous year to 10,449 units.

For the first quarter of the year, the Japanese automaker sold a total of 52,466 vehicles in China, a sharp decline of 32.26% compared with 77,450 units delivered in the same period of 2018. FAW Mazda and Changan Mazda's year-to-date (YTD) sales were 19,682 units and 32,784 units, slumping 37.8% and 28.43% respectively from a year earlier.

The value-added tax (VAT) rate for manufacturing industry in China has been officially reduced to 13% from 16% on April 1. A variety of luxury car brands and joint-venture car brands have announced their decisions to cut suggested retail prices on some models. According to local media outlets, Changan Mazda also provides subsidy for buyers of three models, namely, the Axela, the CX-5 and the CX-8 as replacement of price cut. Especially, the CX-8 buyers will enjoy a subsidy of up to RMB10,000 per car.