Mazda Motor’s new President, Masahiro Moro, immediately went to China following his assumption of duties on June 27, The Japan Times reported.
President Moro sent an email to relevant to inform them that Mazda is “finally going to start full-scale operations” in the world’s largest automotive market.
The move demonstrates the new leader’s commitment to advance in the domestic market, where Mazda lags.
Mazda’s footprint in China
Automotive News noted that Mazda is not a significant automaker in China compared to other brands. The Mazda 3 is currently the company’s top-selling EV, industry data showed. However, it lags behind Chinese startups like NIO and XPeng in 2022.
Mazda also suffered a 41% sales decline to more than 108,000 units in China last year.
In hindsight, the Japanese automaker recorded its highest vehicle sales in the local market in 2016, with more than 316,000 units.
Mazda to expand partnerships with Chinese suppliers beyond powertrains
Mazda announced plans to spend ¥1.5 trillion to support its electrification strategy by 2030. The major investment includes the company’s partnerships with other players.
The company will allocate the funds to launch R&D initiatives, particularly for EV motors and power batteries. However, the report noted that there remains no assurance that all suppliers will be included.
In effect, some part manufacturers are already voicing out their concerns.
“If the parent (Mazda) doesn’t pursue volume, we won’t be able to make a profit.”
Unnamed top executive of a local parts firm
Interestingly, Mazda confirmed plans to expand its partnerships with local suppliers beyond powertrains. It will enable Mazda to “capture the revenues it had failed to generate,” one of its officials stated.
For instance, the semiconductor industry can potentially open a new source of revenue for local suppliers with supportive government incentives.
“Parts manufacturers can advance into chip production equipment if they accumulate expertise in fields such as clean rooms.”
Akinobu Teramoto, Research Institute for Nanodevices at Hiroshima University Director
Mazda aims to achieve a 50% sales growth in China
Mazda set a target of a 50% sales increase in the Chinese automotive market this year.
The brand expects its “main product” BEV model to experience some delay. Nonetheless, it is optimistic that its CX-50 HEV will launch in the fall.
Mazda aims to launch new EVs “one by one” in the local market every year by 2024, Reuters reported. It would include battery electric and hybrid models.
Mazda’s increased electrification efforts in China are unsurprising, given the government’s effective policy implementations to support the shift.
“China is going straight into electrification. Some customers are coming into dealerships only to buy EVs.”
Mazda President Masahiro Moro
See Also:
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Mazda concedes that it would take time before it actually dominates the Chinese EV market. Therefore, it expressed the company’s willingness to be a “follower” until the decade’s end.
