AutoBeta(AutoBeta.net)08/07 Report--

Recently, Mazda China released the latest data showing that sales in July 2021 were 13492 units, down 23.99% from a year earlier. Among them, FAW Mazda sold 3467 units, down 49.04% from the same period last year; Changan Mazda sold 10025 units, down 8.41% from the same period last year. According to the data, Mazda's sales in China fell sharply, much of which was contributed by FAW Mazda, which halved in July from a year earlier.

In terms of models, the top three models sold are Mazda 3 Oncela, CX-4 and CX-5. FAW Mazda has CX-4 and Atez models on sale, of which CX-4 sold 1909, meaning Atez sold only about 1500 in July. Changan Mazda has three models on sale: Unksera, CX-5, CX-8 and CX-30, of which Onksera is 6700 and CX-5 is 1872, while sales of CX-30 and CX-8 remain depressed.

By contrast, Changan Mazda's performance is relatively stable, with monthly sales of more than 10,000 vehicles, while FAW Mazda has seriously depressed sales of the Mazda brand in China since 2020. Since August 2020, Changan Mazda has sold twice as much as FAW Mazda, and this polarization has continued over the next few months.

FAW Mazda sales remain in the doldrums, and the news about the merger with Changan Mazda is also coming out constantly. In June this year, the capital increase project of Changan Mazda Automobile Co., Ltd. has been officially disclosed. According to the project announcement, after the completion of the capital increase project of Changan Mazda Automobile Co., Ltd., the shares held by the new investors shall not exceed 5% (inclusive), and the total shareholding proportion of the original shareholders shall not be less than 95% (inclusive); the proposed new registered capital is 5.8404 million US dollars, and all the funds raised in excess of the new registered capital shall be included in the capital reserve and shall be shared by both new and old shareholders according to the proportion of their shareholdings. The purpose of raising funds is to "improve business quality, improve and optimize industrial layout, and enhance the competitiveness of enterprises."

Based on this, the industry speculated that Changan Mazda's capital increase target locked FAW Group. In response, the relevant head of Mazda China said: "the capital increase project is public, which means that all those who meet the requirements are possible. In the end, the announcement will prevail. We cannot comment on the current speculation." In addition, Changan Mazda did not comment.

As one of the Japanese carmakers, Mazda also has two joint ventures in China, FAW Mazda and Changan Mazda. However, unlike other Japanese car companies, FAW Mazda is a sales company with no vehicle production business. FAW Mazda needs the license of Mazda to sell its models, but the production task will be undertaken by FAW sedans, which is why the Atez and CX-4 models are affixed to the tail mark of FAW Mazda.

Whether it is necessary for Mazda to set up two joint ventures in China is an issue that the market has been discussing. Mazda basically maintains monthly sales of more than 10,000 vehicles in China, but this sales level is only equivalent to the monthly sales of a single model of "Liangtian", and Mazda has only six models on sale, which are also sold by the two companies. dual channels may be easy to manage and check and balance each other, but is it necessary?

Some people in the industry believe that the merger of FAW Mazda and Changan Mazda will help to unify the product matrix and sales network. after all, the Mazda brand belongs to minority brands, the product camp is not perfect, and the brand recognition is not high enough. unable to achieve joint venture advantages to mainstream Japanese brands such as Toyota, Honda and Nissan in China.

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