HIROSHIMA, Japan – Intense rival Mazda turns to new models to revive their fortunes. In addition to including “big products” in its new line, including SUVs to attract car enthusiasts, the company will bring back the rotary engine, the their global model. However, it remains an open question whether the company can reverse the worsening situation, which is exacerbated by the new coronavirus.
Mazda had already introduced new models and engines, but they failed to generate good results. With the pandemic of the global economy, the company’s global sales for the fiscal year to March 2021 are expected to fall to 1.3 million units, a fall of 8% from the previous year. A final loss of 90 billion yen ($ 870 million) is expected to be recorded. The company’s first step is to reverse their position by introducing large high-performance products in 2022.
Mazda is trying to spread out two product groups, “large” and “small” categories, based mostly on cheese size. The major products include new SUVs in a popular line, equipped with six-cylinder engines and rear-wheel drive for sport driving, features aimed at automotive enthusiasts. This unparalleled talent is a secret weapon for Mazda, a small company by global standards.
According to Mazda-related parts manufacturers in Hiroshima Prefecture, production will begin in early 2022 at the company’s base in Hofu city, Yamaguchi Prefecture. The vehicles will be powered by conventional gasoline engines, the new Skyactiv-X engine and diesel engines. They are usually “mild hybrids” with 3 or 3.3 liter movements.
The vehicles come after the existing CX-5 and CX-8 SUVs, but as these models are still competitive, it is likely that they will all be available at the same time. Multiple suppliers are reportedly planning to make about 300,000 units, or just under 20% of Mazda’s global sales, in the fiscal year ending March 2025.
“We are trying to keep costs down by shifting orders to foreign parts manufacturers,” a Mazda official said. The large products aimed at specifications at a price are likely to be significantly higher than the existing models, but the company is trying to cut costs as much as possible to maximize impact. bring on sale. “The price is rising above Mazda’s original idea, and we continue to make changes such as reducing the specification of parts,” said an executive group at one of Mazda parts suppliers.
“Prices vary depending on whether the focus is on sales volume or brand development,” said Masatoshi Nishimoto, manager at IHS Markit. “If they are aiming for size, they should offer more levels of one model to expand the price range.”
Another key is the revitalization of the rotating engine. A new electric model that will use the rotary engine as a generator will be launched in 2022. This is expected to make some difference among the EVs that different manufacturers will introduce.
Mazda’s flagship rotating engine. (Photo courtesy of the company)
In a rotating engine, a triangular rotor rotates inside a cylinder to inject air, tension and comb. In 1967 Mazda was the first company to successfully make a rotary engine, which was seen as a symbol of the company’s technological capability. Mazda completed production of the engine in 2012, but will now return it for EVs. The MX-30, released in 2020 as Mazda’s first fully-produced EV, will be the first EV to be equipped with this system, starting in the first half of 2022. Rotary engines are compact and with high output and low vibration, making them good matches for EVs.
The main issue is the expansion of the vehicle’s 200-km range on a single full battery charge. According to parts manufacturers involved in the development of the vehicle, Mazda wants to double the range to 400 km. A 200-km range would be a problem even for short trips, but a 400-km range would give drivers more peace of mind.
The MX-30, which ended up in Japan in October as a gasoline model, is not currently selling well. The monthly sales target was set at 1,000 vehicles. Retailers in western Japan told Nikkei that they only sold about half that amount in the first two months. Its “freestyle door”, a shared door that opens from the center, is an important issue, they said.
“It’s hard to use where parking spaces are cramped, like shopping centers,” said one vendor’s agency. “The rear doors are heavier than in previous models, which is not appealing to many women, especially those with children.”
However, “the introduction of the rotary engine will be a major selling point that will attract Mazda fans,” said Koichi Sugimoto, senior analyst at Mitsubishi UFJ Morgan Stanley Securities. “If they can balance tour and price range, we can expect steady growth in sales.”
Mazda’s global sales started in April but have remained in negative territory. September sales were down 10% from the previous year, while sales in October were 3% lower than in 2019. Although Toyota Motor and Honda Motor revised their full-year forecasts up in the their interim financial results released in November, Mazda maintained the previous forecast.
The company’s sales had been weak before the outbreak. Sales of the CX-30 SUV, launched in fall 2019, have been strong, but sales of the Mazda3 compact car, which also came down in 2019, and models with the new Skyactiv-X engine has been weak.
Environmental regulations in Europe that impose fines for excessive carbon dioxide emissions have had an impact. Mazda had to change its sales mix by raising the prices of the CX-5, which has high emissions, by about 4% to reduce the fines it paid.
Mazda puts EVs, simple hybrid hybrids and rotating-equipped EVs in its “small product group”. “We are also strengthening our electrification technology for large products, so we want to address global warming with both of these organizations,” said company President Akira Marumoto.
Hybrid plug-in models will be available for large vehicles, which will help push down average emissions and significantly contribute to meeting regulatory standards. The success or failure of Mazda’s two new models will add to the company’s own future.