Mazda predicts stronger CX-9 sales

Mazda expects its first all-new CX-9 since 2007 to achieve what its predecessor didn't: hit its global annual sales target – despite the apparent likelihood it will go up in price.

Speaking to motoring.com.au after its world debut last week in Los Angeles, Mazda's global president and CEO Masamichi Kogai said the new CX-9 – due on sale in Australia around July next year – would generate 50,000 sales a year.

"The current CX-9 actually did not achieve the 50,000 unit per annum target all the years we had it," he admitted.

"So this 50,000-unit target is the minimum life-cycle average volume, and 50,000 units is a feasible number [for the new model]."

Mazda's global chief said the same sales target as before was viable despite the 2016 CX-9's new SKYACTIV-G 2.5T turbo-petrol engine and a full suite of SKYACTIV body, chassis and powertrain technologies, plus MZD-Connect infotainment, Active Sense advanced driver safety aids and KODO design.

He said the new turbocharged engine, which replaces the outgoing model's Ford-designed V6, was cheaper to produce because it is built on the same production line as Mazda's other four-cylinder engines.

"The plant where we produce the engine is the same plant that we develop and create the existing engines, so we are actually utilising exactly the same line to produce this new engine. That is why this business case is viable," he explained.

"And also, looking at the engine itself, compared to the V6 engine, we actually made it more light weight and also improved the cost [of manufacturing]. So looking at the cost of the 2.5-litre engine, we have that viability," he said.

The first CX-9 was always more expensive than key large SUV rivals like the Toyota Kluger and Ford Territory, with a current price range of $43,770-$61,680 making it the company's flagship model.

Kogai-san suggested that situation is unlikely to change with the second-generation CX-9, which he expects to be more popular as buyers embrace the new technology on offer. Indeed he indicated it could be more expensive.

"Although we might have been able to be more cost efficient [in producing the 2.5T] compared to the V6 engine, we actually made improvements in other areas, such as noise, vibration, harshness attenuation and ride comfort considerations, which are of benefit to our customers. So in total I think that we have actually improved product benefits.

"I think once customers test drive the vehicle, I'm sure they will understand the pricing of the vehicle is reasonable."

Mazda has seen a slowing of its CX-9 in Australia as newer models move in to the segment, but Kogai-san says he isn't concerned, saying he expects return buyers to return to showrooms come July.

"We are coming to a very important time, because the customers who purchased new-generation vehicles [2000 onwards] are now coming back to Mazda to purchase what we call second-generation [SKYACTIV] vehicles," he said.

"It's not just a product that we offer – what has been important for this growth is that Mazda Australia's consistent policy since 2000," he continued.

"Instead of just chasing short-term volume, we have looked at the long-term. Without deviating from that strategy, which we call 'right-price sales', and with Mazda Australia giving good guidance to our dealers, we know the dealers are on-board with this strategy."

Mazda has sold only 2848 examples of the current CX-9 in Australia so far this year -- well behind the Jeep Grand Cherokee (10,315), Toyota Kluger (11,427) and Toyota Prado (12,630).

However, Australia still rates second in CX-9 sales volume -- behind the US and ahead of Saudi Arabia – and Mazda continues to be the nation's second most popular automotive brand with more than 100,000 annual sales.

Globally, the Japanese company is relatively small, with annual volume of around 1.5 million sales, but if demand continues Kogai said an expansion of its manufacturing capabilities could be on the cards.

"For this fiscal year our target is 1.5 million units, and we are looking [to expand this to] 1.65 million units in three years' time," he said.

"To achieve that volume, we are not going to construct or build new plants. When we achieve this volume, then we are going to consider if we need to increase our capacity."

Kogai-san said the strong Yen and fluctuating international markets meant the expansion would not occur in Japan, indicating that one of its three offshore sites was a more likely scenario.

"It's probably not going to be Japan, because we need to improve our strength against the exchange rate changeability," he clarified.

"At the moment we have plants in Thailand, China and Mexico, and on all these plant sites we have enough space to be able to build another building. Those sites have high potential."