Mazda aims to sustain sales, refine marketing

The Mazda brand is on a roll, and dealers and the factory agree that the mission this year is to keep up the momentum.

Discussions between Mazda and its retailers at their virtual NADA make meeting focused on staying the course in new-vehicle and certified pre-owned sales and finding the right marketing message as the brand moves upmarket, said Philip Van Riper, chairman of the Mazda National Dealer Advisory Council and vice president at Mazda of New Rochelle and Garden City Mazda in New York.

"Much of the meeting was a recap of some of the successes last year and the elements that made that happen," Van Riper told Automotive News.

Mazda posted higher sales last year, despite the pandemic disruption, and chalked up a 6.9 percent sales gain in January.

"The product lineup is easily the best we've had in many years," he said. "The factory responded to the pandemic with the right programs and the right marketing. We continue to calibrate the marketing so we're speaking to the right audience with the right message."

The new CX-30 subcompact crossover was a big part of the sales gains, and an upscale turbocharged version will go on sale shortly to take on premium brands. Late last year, Mazda added a turbocharged version of the Mazda3 sedan and hatchback that share a platform with the CX-30.

Despite some concerns over inventory, especially for the most popular models, Mazda expects supplies to continue improving, despite the semiconductor shortage that has slowed production across the auto industry, Van Riper said.

"The Mazda supply will continue to grow over the next couple months, so I think going into the spring and the summer, we'll be well supplied," he said. "It does not seem at this point that the chip shortage is going to have a material impact on our operations."

Mazda also told dealers it is moving forward on the brand's facility upgrade program, Retail Evolution, even as the industry shifts deeper into digital sales. The program attempts to project Mazda's more premium intentions with a new color scheme and more elegant design.

"We're continuing with the plans that we have in place," Van Riper said. "Mazda is not asking for overly intense investments. And, frankly, the return on those investments is materializing" in terms of greater dealer profits.

Mazda will also press ahead in CPO sales, which increased more than 8 percent last year over 2019.

"There's an ever-growing focus on retaining those cars and certifying them," Van Riper said. "We'll continue to focus on that this year and in future years."