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NEWS
Mazda growth to flatten
Mazda's climb flattens but new segments and richer model mixes promise fiscal successMazda's local sales growth will plateau in the medium term with step changes in volume likely to become fewer and further apart. That's the outlook for the marque, according to local boss Martin Benders in an interview in Melbourne this morning.
"We're not in the business of chasing volume for volume sake. By the same token we're not looking to go backwards either," the Mazda Australia chief told motoring.com.au.
"It's fair to say that we'll be happy to sit around the 100,000 mark [in the mid-term]," he stated.
"Growth is most likely to come from new segments rather than significant changes in [existing models'] volume," he explained.
In VFACTS registration figures year to date July released today, Mazda is around 1.4 per cent down on the same period last year, against a total market that is 2.1 per cent behind. During the month Toyota's Corolla passed Mazda 3 as the most popular new car Down Under.
This news didn't faze Benders.
"Mazda 3 is up 10 per cent year to date against a [small car] market that is almost four per cent down. At the same time we're selling a richer mix [of higher specification] 3 – 80 per cent of our volume is mid-grade or above. Corolla sales are 80% mid-grade or below," he opined.
"If we're doing these numbers, why would I drive the model mix down chasing sales [of cheaper models] at aggressive price points."
Car makers typically make higher profits on better equipped cars. Australia's ultra-competitive circa-$20-22K entry-level small car benchmark means profit per car at this price point is tight.
Benders confirmed Mazda was delivering a similarly rich model mix with the brand's other star performer, the CX-5 Medium softroader.
He stated Mazda 2's sales slump was largely due to the imminent arrival of an all-new car later in 2014. Benders conceded, however, the company needed "to consider actions" on both Mazda 6 and the BT-50 4x4 and 4x2 variants. The sales of 6 and Mazda's popular utes are currently tracking well below their respective markets on a year to date basis.
"We've always had a vision of being able to appeal to private buyers. User choosers and small fleets are increasingly behaving like private buyers and [with Mazda 6 and BT-50] we now also need to find a way to appeal to these buyers.
"We need to find a solution... It might be service packages [Mazda has recently released a lifetime service product for private buyers] or financing options," Benders mused.
In terms of new segments, Benders was again drawn to the growing importance of the emerging Small SUV marketplace – over 17 per cent up year to date and currently without a Mazda entrant.
While he would not confirm Mazda's timetable, plenty of words have already been written on the prospect of a small stablemate to the CX-5; not surprisingly it's expected to be called CX-3.
"There's very clearly an opportunity in this segment," Benders offered.
"We've made it clear, it's a market in which we'd like to be represented," he said.
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Written byMike Sinclair
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