Mazda Will Increase Prices As It Moves Upmarket

Industry News / 10 Comments

The Japanese manufacturer has to offset high raw material cost.

A quick glance at Q2 sales figures for 2022 will tell you that most manufacturers are still struggling due to several supply chain constraints.

Mazda was one of the biggest losers, despite the popularity of the new CX-50. This popular SUV spends an average of three days on the dealer floor. Even so, Mazda sales declined by 42.8%. In June, Miata sales fell by almost 90%, mainly because the popular Club trim is completely sold out for the year.

Mazda has now confirmed that it will increase the prices of new and top-selling models like the CX-50 to offset the high costs of raw materials.

2023 Mazda CX-50 Front View Mazda

Mazda's global sales chief, Yasuhiro Aoyama, spoke to Automotive News earlier this week, revealing the pricing strategy.

"To offset higher raw material and logistic costs, we have raised prices in markets where we can do so, including the US," said Aoyama. "We will fetch higher prices as we continue to monitor market competition and reassess the competitiveness of our products."

Mazda increased prices earlier this year, and customers can expect more increases as new models arrive. The brand is moving more upmarket, driven by buyers opting for higher trim levels of the CX-50. Mazda is expected to reveal the premium CX-70 and CX-90 next year, which will further elevate the brand's perceived status.

Due to the short supply, Mazda's incentives dropped to an all-time low of $650 per vehicle in July.

"Although there are negative factors such as inflation and rate hikes, we think consumer sentiment and car demand will remain strong since used-car residual values have been at high levels and we have been unable to deliver vehicles fully over the past few years," said Aoyama.

"We will continue to pursue raising vehicle prices, along with efforts to improve the model mix and keep low incentive levels," he added.

Mazda certainly needs the money as the global giant lost $143 million during the year's first six months.

Source Credits: Automotive News

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