AutoBeta(AutoBeta.net)02/06 Report--

Mazda reported results for the fiscal third quarter ended December 31, and its operating profit plunged 76% in the most recent quarter. Operating profit fell to 6.5 billion yen ($59.6 million) in the fiscal third quarter ended December 31, while net income fell 37% to 15.8 billion yen ($144.9 million).

Judging from the announced results, Mazda's operating income and profits have declined, especially operating profit, which has fallen by as much as 76%, mainly due to varying degrees of decline in its sales in the global market.

According to the sales data released by Mazda, in the Japanese market, the cumulative sales of Mazda in the fiscal year (March-December) was 139000, down 7% from the same period last year; the cumulative sales in North America was 305000, down 5% from the same period last year; the European market sold 219000 vehicles in the fiscal year, up 11% from the same period last year. Looking at Mazda's performance in the Chinese market, cumulative sales from March to December 2019 were 175000, down 10% from the same period last year, more than the North American market and the Japanese market.

Mazda holds two joint venture brands of FAW Mazda and Changan Mazda in the Chinese market. In 2019, the cumulative sales of Mazda in China were 227700 vehicles, of which Changan Zda's annual sales fell 16.5% to 136000 vehicles compared with the same period last year. FAW Mazda's cumulative annual sales fell 16.1% to 91000 vehicles.

The decline in Mazda's sales has shifted from the Chinese market to the world's major auto markets, and Mazda has said it was mainly affected by the downturn in China's auto market. Industry insiders believe that in the context of the downturn in the Chinese market, Toyota and Honda, both Japanese brands, have achieved sales growth, while Mazda sales have achieved negative growth, which is mainly due to the single product of Mazda, the lack of product power and the iterative lag of product updates, which is also the reason for its decline in sales in many markets around the world.

First, the product line is narrow. at present, Mazda has only five products on sale in China, including CX-5, CX-8 and Onksera of Changan Mazda, and Atez and CX-4 of FAW Mazda. Compared with the joint venture brands of Toyota and Honda in China, Mazda is relatively simple in terms of products.

Secondly, there is the problem of product power. Mazda also has technical background, but compared with Toyota and Honda, Mazda is relatively slow to update its technology. Although Mazda has changed its model to Atz and CX-4, it has not improved its power system.

Mazda also lowered its outlook for the next quarter, based on a sharp drop in profits in the third quarter. Mazda said its operating profit was expected to be 60 billion yen ($550.2 million) in the quarter ended March 31, down 27% from a year earlier. Net profit is expected to reach 43 billion yen ($394.3 million), down 32 per cent from a year earlier.

The cold winter of the car market will continue in 2020, which is also an important year for Mazda. It is understood that in 2020, Mazda will launch the modified Mazda 3 Uncella, the new Changan Mazda CX-30 and pure electric models exclusive to the Chinese market. In addition, there is a CX-30 that will appear in the eyes of consumers, and if the above models can make a breakthrough in the market, Mazda still has a lot of room for development.

In addition, according to the latest sales, the Mazda brand sold 20963 units in the Chinese market in January 2020, of which FAW Mazda sold 7539 and Changan Mazda sold 13424.

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