Mazda South Africa Steadies Market Share Amid Tough Competition

Mazda South Africa has successfully maintained its market share in 2023 despite a challenging vehicle market characterized by falling sales and intensified competition. Managing Director Craig Roberts shared insights into how the company has navigated these difficulties and its plans to grow in the future.

Mazda’s parent company shifted focus in 2019 to prioritize larger, premium-priced vehicles. While successful globally, this strategy presented unique challenges in South Africa, where consumers are more price-sensitive due to lower disposable incomes.

In adapting to this strategy, Mazda South Africa faced notable challenges:

• The discontinuation of its BT-50 commercial vehicle range due to competitive pricing from local manufacturers.
• Limited offerings in the sub-R350,000 passenger car segment, with the Mazda 2 being the sole contender against popular models like the VW Polo, Toyota Yaris, and Hyundai i20.

Despite these hurdles, Roberts hailed the company’s achievement in aligning with Mazda’s global premium positioning strategy as “mission accomplished.”

While the shift caused market share losses between 2020 and 2023, Mazda South Africa’s profitability in 2023 underscores its resilience. The Mazda CX-5, a compact SUV and the company’s top-selling model locally, continues to lead its lineup.

Mazda South Africa currently offers six passenger models and aims to steadily grow its presence in targeted segments. A new Mazda CX-5 is slated for a global debut in 2025, with a South African launch expected in 2026.

In response to shifting market dynamics, Mazda South Africa reduced its dealership network from 53 to 33 locations. This rationalization aligns with the brand’s current and future product offerings, ensuring a sustainable network that caters effectively to demand.

Despite challenges such as port delays and increased competition, Roberts is optimistic about Mazda’s future in South Africa. He sees signs of recovery in the local vehicle market, which could position the company for future growth.

Globally, Mazda Motor Corporation reported strong performance, with a 12% increase in sales to 1.24 million units and a 45% rise in net income for the fiscal year ending March 2024.

Mazda South Africa’s ability to stabilize its market share in a competitive environment highlights its strategic resilience. With a focus on premium positioning, streamlined operations, and plans for new model launches, the company looks forward to a promising future in South Africa’s evolving automotive landscape.

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