TOKYO – Mazda Motor will retract its goal of promoting around 1.8 million cars internationally through fiscal 2024 as the Japanese automaker grapples with the effect of the coronavirus pandemic, Nikkei learned.
Mazda’s vehicle sales fell a quarter in the first part of this year, further weakening the prospects for the goal. The corporation is expected to announce the resolution on Friday.
The U-turn would mark the most recent setback for the Japanese car in the midst of the pandemic. Nikkei last week announced Mitsubishi Motors’ plan to shut down a gaming app vehicle plant in the country.
Mazda announced the target of 1.8 million cars in November as a component of its medium-term business plan. This represents an accumulation of 15% during the 2018 monetary year. But in the 2019 monetary year, which ended in March, global sales fell 9% to 1.41 million cars after the new models misbehaved.
Between January and June this year, sales fell by 25% during the year to 560,000 vehicles. Although recent sales have shown signs of recovery in the United States and China, Mazda is slow to set a new medium-term target to a later date.
Based near Hiroshima, Mazda has enjoyed good fortune with its energy-efficient Skyactiv engine, which was first supplied with the models launched in 2012. Last year, Mazda attempted to increase sales with the launch of the Mazda 3 subcompact and the CX-30 SUV. , however, its ambitious costs failed.
Mazda and Toyota Motor are building a joint venture plant in the US state of Alabama, which is expected to enter service next year. Mazda is also making a strong investment in electric cars and other next-generation cars.
Nikkei reported in May that Mazda had requested 3 hundred billion yen ($2.8 billion) in financing from Japan’s top 3 banks and other lenders, as it was ready for the additional consequences of the coronavirus pandemic.
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