The challenging Chinese market has offered Mazda some chances to be tested in a heavily contested automotive sector. Mazda has long been the poster child of Jinba Ittai driving philosophy and sharp states there are plenty of large cars from rivals that put Mazda firmer about its right place in the market, too. The Mazda brand appears to have been hit especially hard this year, its sales in China down around 32% which equals approximately about 108,000 units and showing the struggles of some brands that find it a challenge making their products align with Chinese consumers ever changing tastes.
On that strength, Mazda has based much of its attention to the driving experience and aesthetic appeal. A segment of Chinese buyers appreciates aesthetic appeal and refined craftsmanship, qualities that Mazda offers with its KODO design language endowing beautiful flowing lines determining the appearance form. Vehicles such as the Mazda3 and Mazda CX-5 have been popular for their good looks, great driving dynamics. But that does present a challenge for Mazda: the carmaker admits that this sports-car focus is expected to make its cars even more of niche purchase than they are already, and it says mainstream Chinese buyers would prefer something with additional practicality, technology and interior space.
From a product perspective, Mazda is pushing its SKYACTIV technology that enhances engine efficiency and driving dynamics as well as safety. Their balance of power and economy has contributed to fuel consumption gains in models like the Mazda6, which now returns levels as good as 6.0 liters per 100 kilometers (39 mpg). This approach fits with global attempts to limit fuel use, but grows out of step against the backdrop in China where ever-greater numbers of buyers prioritize electrification. (No higher-performance models are mentioned despite Mazda’s claim that a Wankel engine is coming back.) Mazda has had trouble competing in this rapidly growing segment, as more than one-quarter of all vehicles sold in China will be electric vehicles (EVs) by 2022 and the brand hasn’t been offering much EV product.
The tough environment is further exacerbated by the competition from global and local brands alike. While there is a greater variety of hybrid and electric offerings by brands like Toyota, Volkswagen sell more hybrids than any other segment but the Chinese manufacturers dominate on affordability with EVs from companies such as BYD or Geely. The lack of locally produced models that cater directly to the whims and fancies of Chinese consumers, in addition to its rather limited portfolio have resulted in a slide in sales as well. Mazda’s market adaptation and product diversification are reflected in the industry as a whole, which is one of its biggest challenges for meeting China-unique consumer demands.
Complicating matters further have been challenges along the way related to Mazda’s joint ventures in China with FAW and Changan. While other global automakers have succeeded in pushing their footprints further by using joint ventures, Mazda partnerships did not give the same market penetration effectiveness. Industry analysts say poor localization and insufficient model updates have left the brand trailing its rivals in terms of volume growth.
Mazda, however, stands to be the hardest hit because its China strategy relies more than others on premium compact and mid-size vehicles that target a different kind of buyer. The approach stands in contrast to other foreign brands have sections offering vehicles ranging from entry-level up to the high-end luxury cars. Mazda’s appeal is limited by its relative lack of SUVs in the fast-growing segment where Chinese consumers are heading, toward larger and tech-rich models. By way of example, the Mazda CX-8 can be ordered from with seven-seat seating capacity yet goes up against options offering a better level of equipment (and might even come via factory order) — both locally and internationally.
Mazda has faced its other struggles, such as marketing and brand perception problems in China. The brand’s focus on fun-to-drive character and high-quality finish, which might play well in markets where things like advanced infotainment systems, connectivity features and cabin space are less of a priority. A new survey reveals almost 60 per cent of Chinese car buyers see in-car tech and space as more important than driving dynamics, where Mazda falls short.
If you want to learn about more of Mazda’s products, or just its Chinese situation in general, websites like mazda china offer access to model information and market trends. Despite this, Mazda is sticking to its guns in China and said that it will continue towards a model range emphasizing quality and driving excitement but the level of market penetration rests on how well they can adapt their lineup [and presumably sales pitch] for local tastes as electrification remains an inevitable trend.