TOKYO (Reuters) -- Mazda Motor Corp. has decided to stop development and production of commercial vehicles in the second half of the decade as it faces dwindling domestic demand, the Nikkei reported.
The decision means the company will no longer develop or manufacture any of the commercial vehicles it sells, the business daily said.
Mazda now procures trucks from Isuzu Motors Ltd., commercial vans from Nissan Motor Co., and commercial minivehicles from Suzuki Motor Corp., the Nikkei reported.
It's unclear whether Mazda will discontinue commercial vehicle sales outside of Japan, as well.
Mazda sells its E-series light trucks and panel vans outside of Japan, and makes the BT-50 pickup truck for personal and commercial use in Thailand, Columbia, South Africa, Ecuador and Zimbabwe.
Mazda's box-style and small-truck Bongo, which debuted in 1966 and has been a long-time seller, has seen sluggish demand of late as the domestic market for commercial vehicles stagnates and competition intensifies, the newspaper said.
The company, which entered the automobile market in 1931 with the Mazda-go, a three-wheeled truck, is bracing for a group net loss of 100 billion yen ($1.21 billion) for the year ending next week, the Nikkei reported.
It will continue to overhaul money-losing operations and focus resources on passenger vehicles featuring its Skyactiv technology, which centers on a highly fuel-efficient engine, the daily said.