Mazda combines ventures with China partners to deal with sales decline

by SpeedLux
Mazda cx 9

Mazda Motor is set to merge its two major joint ventures in China, the automaker announced Tuesday, paving the way toward streamlining operations and recovering its declining sales in China.

The automaker’s new car sales in China have dropped every year since peaking out at about 310,000 vehicles in 2017, reaching about 210,000 in 2020.

January-July sales saw a drop of 4% on the year.

In an effort to combat the decline, the automaker will unite its operations in the country, currently divided between its joint ventures with FAW and Chongqing Changan Automobile.

Mazda has a 40% stake in FAW Mazda Motor Sales, with the rest of the stake held by FAW, and an equally held 50% stake in Changan Mazda Automobile.

The capital stakes will be remodified so that Mazda and Changan Auto will each hold a 47.5% stake in Changan Mazda, and FAW will hold the rest of the 5% stake.

The new Changan Mazda is also set to own 60% of FAW Mazda, with plans to eventually control the other 40% from Mazda to turn FAW Mazda into a wholly-owned subsidiary.

For now, Changan Mazda and FAW Mazda will remain separate businesses, according to Mazda. But they are expected to streamline their operations, and could also cut down their product lineup and merge their sales networks.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.


©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More