Mazda cuts prices in race for number one

Small-car buyers are set to be the big winners of a price war at the top of the sales charts. The starting price of the Mazda3 has been cut by close to $3000 -- to $19,990 drive-away -- to try to regain the lead from the Toyota Corolla. The last time Mazda’s small car sold at this price was in the early 1990s.

The Mazda3 has been Australia’s favourite car for the past two years after it ended the Holden Commodore’s record 15-year run. But it has been overtaken by the Toyota Corolla for the past two months in a row and is now in a race to the finish line at the end of the year.

Mazda Australia has ordered a massive shipment of 25,000 Mazda3s for the last six months of the year because the current model is due to go out of production in September, to make way for the new version early next year.

“We had to go ballsy with the price,” said the boss of Mazda Australia Martin Benders. “We’ve ordered enough cars to carry us through to the end of the year. We plan to hold our [sales] running rate.” That means Mazda expects to sell 45,000 Mazda3s this year, a tally which should see it regain its Number One status and give the car its third consecutive victory as Australia’s top-selling car.

“It would be nice [to be number one three years in a row] going into the new model,” said Benders. “Will I lose sleep over it? No. I think it’s acceptable to not be number one in the car’s last year.” Mazda says it depends on what action Toyota takes with the Corolla. Most of Mazda’s sales are to private buyers, Toyota sells to a lot of fleets.

“It depends on what the others do,” he said. “But we know how many cars we have and how many we will sell. If we run out in December that’s ok, because the new model will launch in late January.”

Mazda said in the two weeks since the new, third-generation Mazad3 was revealed about 750,000 people visited its dedicated web page, 40,000 people entered a competition to win one and 30,000 people have expressed interest in buying one. But Mazda has warned the new model will not maintain the current car’s runout pricing.

“Price is not a key issue for this car,” said Benders. “Plenty of people want it. You won’t see a $19,990 price on the new model. It is a step up and it will get the price it deserves.”

This reporter is on Twitter: @JoshuaDowling