Mazda banking on B-cars

Japanese car maker Mazda has high hopes that the smaller subcompact models, including eco-cars, will drive its sales growth this year, with the segment’s contribution expected to increase to 60% from 19.8% last year.

Hidesuke Takesue, president of Mazda Sales (Thailand), said the subcompact or B-car segment for engine sizes ranging from 1,300 cc to 1,500 cc, which includes eco-cars, was attractive to new owners and drivers.

Last year, the segment accounted for 32% of the country’s domestic car sales, estimated at 850,000 units.

“Mazda believes that new drivers prefer buying a small vehicle as their first car,” he said. “Moreover, the prices of eco-cars and B-cars are affordable for those drivers.”

The company introduced the Mazda2 to the local market in 2009 and officially kicked off its local Mazda2 eco-car production in November last year.

Mazda was the first eco-car manufacturer to apply for the Board of Investment’s promotional incentives in the second phase, as well as one of five new car makers to apply.

In total, 10 car makers including five existing eco-car manufacturers officially applied for the scheme, the deadline for which was set at the end of March.

The 10 projects will make 1.58 million eco-cars combined for 100 billion baht more than the total outlay from the first phase.

The existing five manufacturers have earmarked 86.8 billion baht to produce 753,000 eco-cars, while the five newcomers will invest 52 billion to make 828,000 vehicles.

Thailand launched the first phase of the eco-car scheme in 2007, attracting investment of 28.8 billion baht from Mitsubishi, Honda, Toyota, Nissan and Suzuki.

Mazda will invest 9.73 billion baht to make 158,000 eco-cars and 200,000 auto parts annually.