Mazda is in the red, but with growth forecasts

Unlike other Japanese manufacturers who knew or could limit the damage, like Toyota, Mazda suffered damage in its first fiscal quarter, which corresponds to the second calendar quarter.

And not just a little. Subject to production difficulties and the supply of raw materials, electronic parts and semiconductors, also subject to the complete shutdown of Shanghai automobile production during the complete “lockdown” due to the pandemic for more than two months between April and May Figures are bad, very bad.

Thus, in the period from April 1st to June 30th, the Hiroshima manufacturer sold 233,000 vehicles, a decrease of -34% !

In Europe, April-June sales fell 45% year over year to 30,000 vehicles, and Mazda volumes in North America fell 42% to 79,000 units. In Mazda’s home market, Japan, 25,000 units were sold (-10%). China, Mazda’s largest market in Asia, sold 24,000 units (-50%).

It’s not in the best of shape financially either. For the fiscal first quarter, Mazda reported net sales of 617.2 billion yen ($4.4 billion) and an operating loss of 19.5 billion yen ($141.3 million). However, the net result was 15 billion yen (108.6 million euros), mainly thanks to the beneficial effects of exchange rates between the yen, the dollar and the euro.

Brighter prospects

The new Mazda CX-60, a large plug-in hybrid SUV, will contribute to the good future results of the brand, the pre-orders are numerous indeed.

But the outlook announced by the Japanese is sunnier, like the French weather forecast. Mazda therefore hopes to sell 1.3 million vehicles over its full fiscal year, which is what that would mean an increase of 8%. The brand is based on the hope of normalization on the production side in the second half of the financial year (ie in the third quarter for us, you will have understood). And she’s anticipating a 22% increase in sales for the full year.

In addition, demand is strong and the order books are full. For example, the all-new CX-60, the recently announced large SUV that will be launched in most European markets in September 2022, has already recorded 11,600 pre-sales in Europe and 6,400 in Japan.

Forecasts are cautious given the instability of the markets and the pandemic situation is still not 100% resolved, but encouraging for this “small” Japanese manufacturer.