Mazda Southern Africa (Mazda SA) appears to be building another positive year in a domestic new-vehicle market that will, most likely, contract yet again.

South Africa’s domestic new-vehicle market declined by 11.4% in 2016 over 2015, while Mazda SA managed to grow sales by 33%, from 9 067 units in 2015, to 12 049 units in 2016. (Consider also that the company sold 4 939 units in 2014.)

“We have managed to grow steadily off a low base,” says new Mazda SA MD Craig Roberts.

Roberts, previous sales head at Mazda SA, took over from David Hughes on April 1.

He is Mazda SA’s second boss since the company started operating independently from Ford on October 1, 2014. 

Roberts says Mazda SA’s sales numbers have been driven by a number of factors, such as new product launches, as well as a sustained marketing budget by the company’s Japanese parent company, despite the economic downturn in South Africa.

A product mix where four vehicles – the CX-3, CX-5, Mazda 2 and Mazda 3 – all sell an equal share has also assisted, ensuring that the company is not too dependent on the popularity of a single model.

“We also have a fantastic dealer network. Our 52 dealers really capitalise on every opportunity they have,” says Roberts.

Another critical factor in growing Mazda sales in South Africa has been the company’s strategy to not “do any fleet business”, he adds.

“We do not sell into the rental market, as we want to build our vehicles’ residual value. We target only private buyers and that has worked for us, and we intend to stick with this strategy. It is one of the key pillars of our business.”

Roberts aims for Mazda SA to have another positive year in 2017.

“We are on track to grow by 8% this year, to around 13 300 units.”

Ultimately Roberts would like to increase Mazda’s market share in South Africa’s total market from the current 2.7%, to 3.25%.

South Africa is one of Mazda’s top 12 markets worldwide, by volume.

The BT-50
In 2014, 80% of the Mazda SA sales mix was BT-50 one-ton bakkies.

That has changed, with sales now around 50 units a month.

“While the strategy to reduce our reliance on BT-50 was intentional, we would like to see BT-50 sales mix closer to 85 units a month. Suffice to say we are not taking on Toyota and Ford in the volume stakes,” notes Roberts.

With a new BT-50 in the pipeline, Mazda SA’s current task is to sustain the nameplate in a highly competitive market until the new pickup hits the market.

There is, however, no timeline yet for this introduction.

The new BT-50 will be the result of a global collaboration project between Isuzu and Mazda.

“It will be a completely new product, tending more towards the truck look,” says Roberts. “It will not be a badge exercise to differentiate it from an Isuzu.”

The range will also feature new engines.

Roberts says it is unlikely that the BT-50 will be produced at the Isuzu plant in Port Elizabeth.

New Product
Mazda is mulling the introduction of a seven-seater CX-8 sports-utility vehicle to the local market.

While the newly launched CX-5 is the only completely fresh product expected in 2017, next year will be a different story.

With Mazda gearing up to roll out its seventh-generation product line-up in 2018, Mazda SA will seek to start local model introductions in the third quarter of next year, says Roberts.

“This will be a complete generation change of all our products, with new engine and transmission technology.”