Ma Zida falls into a "triangular love" in China
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On August 20, executives from Changan Ford made a visit to Mazda in Japan, sparking significant attention within the automotive industry. This move comes as part of Mazda’s broader strategy for the Chinese market, which was first announced at this year’s Beijing Auto Show. Following its participation in the Changan Ford Nanjing project, Mazda is preparing to unveil its first model in China, though details remain under wraps.
This partnership marks the beginning of Mazda’s efforts to integrate its sales channels with FAW and Ford. The company is working on a complex collaboration, not only by introducing new products but also by strengthening its sales network. Interestingly, this development coincided with a price reduction announcement by FAW Haima just two days earlier. On August 18, FAW Haima, which had recently gone public, adjusted its pricing across several models, with some seeing a 15% drop and others, like the Prima, experiencing a flat 10,000 yuan reduction.
While FAW Haima and FAW Car reduced prices through their distributors, many believe these moves were inspired by manufacturer-led strategies. One reason manufacturers avoid direct price cuts is to avoid the negative publicity that often accompanies simultaneous reductions, such as those seen between North and South brands. Instead, they aim to maintain a more controlled image while still achieving market competitiveness.
Mazda has already made progress in unifying its brand presence. At the Beijing Auto Show, the company outlined its China strategy, emphasizing the need to consolidate sales channels. Currently, FAW Haima and FAW Car each have their own independent networks, but Mazda aims to merge them into one unified entity. According to Wang Dianming, General Manager of FAW Car Sales Co., the two companies are planning to establish a joint venture focused on sales rather than production, with a timeline set for the end of the year.
This initiative mirrors Toyota’s approach when it integrated its sales network in China by forming FAW Toyota Sales Co., Ltd. It's likely that FAW Car and Mazda will follow a similar model, integrating FAW Haima’s existing sales structure to handle all Mazda-branded vehicles in the domestic market.
In addition to sales integration, Mazda also announced plans to build a production line capable of producing 300,000 units annually in China. However, current reports suggest that Mazda may not be establishing a separate plant, but instead leveraging existing projects. For example, the Nanjing Changan Ford project, with an annual capacity of 200,000 units, could potentially allocate 100,000 units to Mazda.
Despite media speculation about Mazda’s stake in the project (some reports suggested a 12.5% ownership), Mazda officials have remained non-committal, calling it “media speculation.†Meanwhile, Mazda continues to explore strategic partnerships, including potential collaborations with both FAW Haima and Changan Ford.
Notably, imported Mazda models have started appearing in FAW Haima dealerships, signaling a shift in distribution strategy. Some dealers have even begun showcasing imported sports cars, hinting at future domestic model introductions. This move underscores Mazda’s growing interest in expanding its presence within the FAW Group framework.
Looking ahead, Mazda appears to be carefully balancing its relationships with both FAW and Ford. While it emphasizes cooperation with FAW, it must also align with Ford’s broader vision for its sub-brands in China. As Mazda continues to navigate this complex landscape, its long-term success will depend on maintaining strong partnerships while adapting to the evolving market.
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