On March 31st, the Japanese OEM Mazda ended its 2013 fiscal year, one which it hailed as the best in its 94 year history. In fact, profits for the company were up an incredulous 238% up to $1.88 billion. Earnings, revenue, and global sales value all saw a jump in this fiscal year.
This huge jump, however, was not due to Mazda’s operations in the United States, which may surprise many. While Mazda did report gains in the North American market, up about 5% to 391,000 units from last year, it did not even hold a flame to Mazda’s profits in the the European market. Sales increased 25% to 163,000 units in Europe, hallmarked by a 35% increase in the Great Britain market. Another good sector for the Japanese company were domestic sales, up 13%, and sales in China, up a respectable 12%.
While Mazda is not too concerned about the North American market, they are a bit disappointed in the lack of jump that they saw in other markets. North America is still Mazda’s largest market consisting of 391,000 units sold last year. This disappointment comes right on the heels of the launch of the new Mazda3, Mazda6, as well as the CX-5, three products that were hailed as huge successes. CEO Masamichi Kogai is not too concerned about the North American market, and has promised to get US sales up to 400,000 units.
The Mazda, typically seen as an average car for those on a budget, is seeing a surge in sales. Is this bump in sales due to the change in style that Mazda has experienced in the past few years? Or is this a sign of an improving economy, allowing lower socioeconomic classes to afford new cars such as the Mazda3, which starts at $16,945? It will be interesting to see how Mazda can follow up these incredible sales of this fiscal year.
– Zac Durkin