Ma Zida falls into a "triangular love" in China

On August 20th, executives from Changan Ford made a visit to Mazda in Japan, sparking significant interest within the automotive industry. This trip comes at a time when Mazda has recently joined the Changan Ford Nanjing project, with the first model expected to be unveiled soon. The collaboration marked the initial step of Mazda’s China strategy announcement at this year’s Beijing Auto Show, but it is only the beginning of a broader plan. Mazda is working on integrating its sales channels with both FAW and Ford, aiming for a more unified approach. Interestingly, just two days before the Changan Ford visit, price cuts were announced across several models, including FAW Haima, which adjusted its pricing system by up to 15% in some cases. These moves seem to reflect a coordinated effort between manufacturers and dealers, with many believing that the price reductions were inspired by the manufacturer rather than solely driven by distributors. Mazda’s strategy includes unifying its sales networks in China. Currently, FAW Haima and FAW Car each have their own independent sales systems, but Mazda plans to merge them. A joint venture company is reportedly in the works, though not involving production lines. This move is expected to streamline operations and enhance brand consistency. In addition to sales integration, Mazda also announced a goal to establish a production line capable of producing 300,000 vehicles annually in China. However, the current standard capacity of Mazda’s production lines is around 200,000 units, suggesting that the new facility may be shared or integrated into existing projects. The Nanjing Changan Ford project, with an annual capacity of 200,000 units, could potentially provide Mazda with 100,000 units of production space. While details remain unclear, some media reports suggest that Mazda may hold a 12.5% stake in the project, though this has not been officially confirmed. Meanwhile, Mazda has quietly expanded its presence in the Chinese market by introducing imported models into FAW Haima’s sales network. This move appears to be part of a larger strategy to build brand awareness and prepare for future domestic models. Some speculate that Mazda may soon launch a joint venture with FAW Haima, aligning with national policies while maintaining relationships with key partners. Mazda is carefully balancing its relationships with both FAW Group and Ford, as it seeks to maintain autonomy while adhering to Ford’s strategic direction. At the Beijing Auto Show, Mazda’s representatives emphasized the importance of its partnership with FAW, stating that “Mazda wants to drink water and does not forget to dig wells.” Overall, Mazda is laying the groundwork for a more integrated and efficient presence in China, combining strategic partnerships, production expansion, and sales consolidation. As the automotive landscape continues to evolve, Mazda’s next steps will likely shape its long-term success in the region.

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