Mazda has released its first quarter financial results for the fiscal year ending March 2020, which revealed a revenue of 848.9 billion yen for the first three months ended June 30, 2019. This represents a 23.4 billion yen or 2.7% decrease compared to the corresponding period of the previous fiscal year.

The dip in revenue is attributed to a 12.5% year-on-year decline in global sales volume, with the Japanese carmaker delivering 353,000 cars in the quarter compared to 403,000 cars in Q1 FY 2019.

Across all markets, with the exception of Europe, sales declined by between 10-21%. Focusing on the ASEAN region, which is bundled under “other markets,” sales of Mazda vehicles dropped from 32,000 units to 29,000 units (-11%), with Thailand (15,000 units) and Vietnam (7,000 units) both experiencing year-on-year declines of 10% and 3% respectively.

Mazda’s operating income amounted to seven billion yen (-78.8%), which is close to Nikkei’s earlier report, while ordinary income totalled 9.1 billion yen (-78.3%). The company ended the quarter with a net income of 5.2 billion yen, a decrease of 15.3 billion yen or 74.5% from Q1 FY2019.

Despite an unfavourable first quarter, the carmaker’s forecast for the full fiscal year is optimistic, as it expects to deliver 1.618 million cars, which is a 4% increase from the 1.561 million cars it recorded in FY 2019. The company also projects a revenue of 3,700 billion yen and net income of 80 billion yen for FY 2020, which are gains of 4% and 27% from FY 2019.

In terms of key initiatives, the company says the latest Mazda 3 “has successfully increased the ratio of higher-grade models and per-unit revenue in markets where it has been introduced,” including for future products. It also aims to reduce incentives globally and shift to a higher price zone, while promoting sales by focusing on communicating product value to customers.

Later in April, assembly of the CX-30, Mazda’s second model in its next-generation product line-up, will commence at the Hiroshima Plant ahead of a rollout this summer. This will be followed by the start of production of the CX-30 at its Mexico plant by the end of the year.

Additionally, preparations are on track for a new manufacturing plant in Huntsville, Alabama, which is part of a joint venture with Toyota, with the foundation work already completed and steel frame construction is currently underway.