In recent years, Japanese manufacturers have been busy building small, low-cost, fuel-efficient vehicles for ASEAN markets, taking advantage of various tax breaks and other benefits for these cars in countries, such as the Eco Car project in Thailand and the Low Cost Green Car (LCGC) in Indonesia.
Incentives from these programmes – which demand small 1.2 litre engines, compact size and low fuel consumption – have given rise to cars such as the Honda Brio, Mitsubishi Mirage/Attrage, Nissan March/Almera, Suzuki Swift and Toyota Yaris in Thailand and the Daihatsu Ayla and Toyota Agya twins, the Datsun GO/GO+ and the Suzuki Karimun Wagon R in Indonesia. However, one Japanese carmaker is conspicuously missing, and that is Mazda.
At a business presentation for ASEAN markets in Japan recently, executive officer for growing markets Hiroshi Inoue explained why the Hiroshima carmaker has largely avoided what must be a fairly lucrative segment. A small company like Mazda, he said, could not afford to diversify its product portfolio to suit different markets, as it did not have the cashflow to do so.
Inoue added that to build an eco or budget car, the company would have had to scale back its investment in the next generation of its so-called SkyActiv vehicles, i.e. those from the CX-5 onward, which feature the Kodo design language, SkyActiv powertrains and new technologies.
Instead, the company pushed on with the development of its core global models which are more premium and technologically-advanced, banking on the increase of more affluent buyers in emerging markets to be enticed by its cars. And judging by its sales figures in ASEAN – which jumped from around 78,000 units in 2014 to about 102,000 in 2015, an increase of 24,000 units – it appears that strategy is working very well for Mazda.
Actually, Mazda already has one model that is classified as an eco car – the Mazda 2 1.5 SkyActiv-D diesel, sold in Thailand, complies with the country’s Eco Car regulations, the first diesel car to do so. However, we’re assuming that Inoue is referring to specially-developed models targeted for this region, such as the Honda Brio and the Daihatsu Ayla/Toyota Agya.
Mazda is on a roll in Malaysia – it has recently launched its range of diesel-powered models, the CX-5 and Mazda 6 2.2 SkyActiv-D, and is gearing up to introduce the MX-5 RF and the CX-9 sometime at the end of the year or in early-2017.
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better don pollute own brand by making sub-par car
Mazda- make sense..
After ages stilll cannot build ecobudget car so Mazda pls kolos shop
You want to see more sampah cars on the road?
Couldn’t agree more. But better NVH please.
All B-segment & below (City, Brio, Vios, Yaris, Almera, Attrage, Mirage, Swift, Polo, Vento, etc…) for the poor 3rd country…
”A small company like Mazda, he said, could not afford to diversify its product portfolio to suit different markets, as it did not have the cashflow to do so”.. take it p1..
how about our best selling p2? for the very poor 4th world countries?
Mazda has always been a bit more premium than other mainstream japanese carmakers ( in this part of the world at least) so avoiding that segment is not big loss for them.. give us world cars and I would be happy to buy one…
Since proton is still quite keen to remain in the budget segment, perhaps a JV with mazda would be good as they can utilize each other. Proton can produce models to fill this budget market and provide manufacturing base here in msia, while mazda can provide proton with technical know how. Win-win.
Actually this makes a lot of sense
Mazda is a good car
Crampy car, next!
Dumbhead!!! go get a bus, for chrissake!!
Good move Mazda. Look at Mitsubishi, the Mirage and Attrage is not selling well. Dont need to make underpowered and boring cars like the rest. Mitsubishi as a car company division, it is also about the same company size as Mazda . Skyactiv-D is damn good and Mazda is the only one left using non CVT gearbox for their latest models. The rest all have moved to the dull and boring CVT gearbox.
Totally agree.
Mazda stands with its philosophy and continue to build cars.
Mitsubishi seem to be losing focus and make small, eco cars. Mitsubishi was well known with its advanced technology back then, especially with Evos.
The current Lancer is ageing, and they are yet to complete the plan for next gen sedan.
Well, would love to see a return of rotary from Mazda
absolutely right!!! CVT sucks… for lame ppl