It looks like Nissan isn’t going to be the only Japanese automaker to report a drop in profits – Mazda will be announcing its fiscal first quarter results later today, and word is that it is likely to report a 70% year-on-year decline in operating profit for the April-June period, according to the Nikkei.
The publication says that the automaker is expected to report an operating profit of about 10 billion yen (RM380 million) for the term, which is half the market’s expectation of 19.7 billion yen (RM747 million), based on a QUICK Consensus forecast.
Sales are expected to total around 850 billion yen, which is down by around 3%. Meanwhile, global sales are predicted to be around 350,000 units, a drop of a little over 10% from last year, with performances in the US and China not being able to offset a general softening of demand for new vehicles. Unlike Nissan, there looks to be no indication of job cuts or a scaling down in production and models.
The report adds that the company apparently saw its fourth-gen Mazda3 compact sedans and hatchbacks falling short in terms of expected sales.
The car, a core model for the company, was remodeled and its powertrains revamped as the automaker set it out to compete higher up the ladder, against premium European brands, but the changes have also meant an increase in price, something that buyers have naturally not taken to. The shift in preference for SUVs and other large vehicles in the US have also created difficulties for the brand.
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When you upcar ur pricing what did u expect? U think ur up to Mesidis level alredi so u price ur cars up that level? Lolz!
Even the other bigger Jepunis brands have to create luxury subbrand like Lexus, Infiniti, Acura, etc just to convince some customers to buy theirs over the Jerman Big 3. Mazda think their brandname alredi reach that level? Double lolz!
Japan gomen bailout/soft loan incoming. Lolz!
It’s not luxury only. Take the maintenance intervals in Europe:
-Mazda 3: yearly / 20.000km (whatever comes first)
-Golf Mark VII: 3yrs./60.000km. (After that 2yrs./60.000km)
In some countries maintenance is very expensive due to high labour cost and 20% GST. Only increasing the price, but not the maintenance intervals, makes the cars uncompetitive in such countries.
What language is this?
Not a surprise. I think Mazda needs to revamp their pricing strategy. They cant simply put high price tag on their cars as they wish. For example the price of a CX-9 in Malaysia is ridiculous. CX-9 in Australia is about the same price of a KIA Sorento there! Just look at the price of the recently launched Mazda 3. Come on! We have the choosing power. Not everyone is interested to own expensive CBU unit!
Deswai KIA Sorento damn berbaloi. usah tunggu2
Deswai KIA Sorento damn berbaloi. usah tunggu2
Not so surprising when they tried to position their c segment sedan as a premium model. This segment is supposed to appeal to the masses so end of the day price point is a big factor. May work on the suv end where the lines are slightly blurred at price points but not for a sedan….not many are fooled to think they are a buying a bmw for the price of a Mazda.
Mazda spent way too much on R&D. And then underpriced their cars, hence profits dropped 70%. For us consumer, its great quality bargain.
Underprice their cars? In which era of Mazda did that last time happened?
Premium focus is a must but prices soar too fast without a proper sales and marketing arm locally will fail eventually as well. QC is another entity never to overlook
They thought customers would understand their price hike but at the end of the day it’s still a price hike and many customers globally are looking solely at the sticker price before signing the dotted line and in customers eyes, a Mazda is on the same level as a Honda or Toyota even though Mazda thinks it’s more premium compared to their rivals. This will show them where they should be and not try to think they can reach BMW or Mercedes.
Pricing comes in tandem with brand prestige, if their brand name is not up to that level, they shouldn’t expect a majority of previous Mazda buyers to accept the price increase or to steal sales from the luxury marques. Poor Mazda just don’t have the brand name.
pricing is key for success, incoming china brand car will be more cheaper and high tech
I think price of the Mazda 3 is competitive with the features and great interior/exterior the one issue that lost it sales is the poor rear seat legroom, with this redesign it should have increased like most of its competitors
With a longer wheelbase they could screw up the rear legroom? Their engineering dept must be sleeping!
1.5 NA with torsion beam, what to expect from that spec vs price?
Seems like the market for traditional ICE cars is shrinking. Millennials are not buying cars anymore. They just need mobility.
Unless I am a major shareholder of Mazda, there is nothing much I can do. If I really like the car and can afford it, the premium is really unquantifiable. It is just a subjective justification to satisfy one’s desire.
The price was too much. Its only a car. Not a house. Don’t have any value at all on the next day. Stuck in the traffic. Can’t move at all. No point having a expensive car. Not all people can buy.
Great news. The more about Mazda the more its getting clearer that they are selling nonsense in a fancy package. The Skyactiv tech and bland interior are two examples – SKyactiv doesn’t deliver any fuel savings or power increase in real life (check real user statistics) and the interior is horrible.
I’m a big Mazda fan and I really wanted to like the new 3 but I was disappointed. The cabin is so dark and pokey partly due to the black cloth roof, seemingly slightly smaller rear windows and rear window view visability is shockingly bad. Removing the rear parking sensors because there is a camera is a mistake and I would have preferred they kept the touchscreen to use when stationary. Lastly the engine, for me personally, the skyactiv G is fine and responsive enough 90%+ of the time but I understand a new car should have a refreshed engine and whilst reviews are coming in the soon to be skyactiv x is a bit better, it doesn’t make that much of a difference. Mazda have introduced a turbo engine in the top range cx5 and the reviews are glowing whilst almost every review of the new 3 says the engine is average and needs a turbo boost. Mazda needs to listen to feedback and move quickly to address these issues in a highly competitive Market.
They also need to rollout the new infotainment system to new selling 2’s, cx3’s and cx5’s now, not in a year’s time if they want to stay ahead of the game.
Well, when you get outclassed in tech and features by cars that are significantly cheaper such as Hyundai, what do you expect? I’m currently leasing a 2017 CX-5 Grand Touring. I went and looked at the fully loaded 2019 Hyundai Tucson Ultimate, and was blown away by the amount of tech for significantly less. Unless Mazda ups the ante, they are doomed.
I would have love to buy a Mazda. But honestly, I will not. To many promises and no follow up. Cx5 diesel. I waited and waited. Still no diesel. Even when their website promised it to Be 2017 and then again delivery BY July this year. It’s August and jailers have none in stock. And frankly I highly doubt they would even get him at this point.and even if we do why would I want to pay that much money for something that gets crappy gas mileage
Skyactiv x. Great gas mileage supposedly. Promised for the US. But now not getting it.
Not sure who runs the company marketing or the president either way I’m out. Purchase the RAV4 hybrid. Love it.
For Malaysia market, you got the right pricing for the CKD CX-5 and previous generation CKD Mazda 3, the rest of the lineup are losing to rivals by quite a margin.
The B-segment is a bread and butter but the Mazda 2 sales is nowhere near Honda City, BR-V or Toyota Vios.
The new Mazda 3 CBU pricing is straight to the drain. You have a very small market for a car that is smaller in space, less powerful, higher roadtax and much more expensive than the segment leader Civic Turbo.
Either you price the car and spec to be competitive with the rivals (Honda & Toyota in Malaysia), or you create a premium sub-brand to compete with the German trio. You will ended up nowhere using Mazda brand and price it in between T&H and BMW/Merc.
Hyundai splitted out the Genesis and PSA splitted out the DS for premium market. Create a premium sub-brand if you want to fight with the German trio.
Engines gutless too in the real world.
Their mazda 3 didnt sell well because its rediculously butt ugly and most mazdas in the all important SUV market segment are way too overpriced.
Bagus. Deserved it.
Lower the price of the Mazda3, or create another model that is more affordable.
Toyota and Honda is leading the market globally with similar/ close enough pricing point. Followed by perhaps nissan. Now Mazda not at all a popular car for at least 3 decades coming up with a so called high end model priced above Toyota and Honda’s price point in Malaysia. How do you expect to capture market. Just because your cost of manufacturing your cars are high alone is sufficient justification for your selling price. Your entire business strategy needs revisiting, I am not convinced to buy Mazda for the last 3 decades and what make you think I will even consider a model costing 30% higher than a Toyota or Honda.
Seriously, how do you intent to turn around this business without convincing your customers that there is value for their money.
This day and age, we have multiple models and makes to choose from.