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Still think Mazda is too expensive? It's time to admit we were wrong about brand's premium push as Mazda 3, CX-5, CX-9 and BT-50 shine | Opinion

Mazda is in the middle of a stellar year in Australia.

Mazda copped some flack a couple of years back – about the same time as the new Mazda3 was unveiled – about its well-publicised push into premium territory, along with the increased prices that invariably go along with such a move.

And for a while there, it did seem a misstep from a brand that was once one of the true heavy hitters in Australia.

To recap the numbers: In the first seven months of 2020, Mazda shifted some 46,653 vehicles. Compare that to the 63,598 that found homes in the first seven months of 2019, and 68,264 for the same period in 2018.

That significant sales slump seemed to correspond with the brand's push up market, with the new Mazda3 welcoming a new pricing jump that even Mazda CEO Akira Marumoto conceded was "too large.

In Australia, too, the fourth-generation Mazda3 ushered in price increases, with the cheapest Neo and Maxx Sport models dropped.

Instead, the model lineup comprised six grades, starting at $24,990 before on-road costs for the entry-level G20 Pure (manual), stepping through the G20 Evolve ($26,690), G20 Touring ($28,990), G25 Evolve ($29,490), G25 GT ($33,490), and finally running up to $36,990 for the G25 Astina.

That $24,990 starting price represented a significant $4.5k increase over the $20,490 entry point of the outgoing range.

"The price jump for the entry-level could have been too large — that is something we are reflecting on right now," Mr Marumoto said in 2020.

"For the previous-generation Mazda3, there were entry, core and high-grade models. For the entry, the price was around $17,000 or $18,000. We made a conscious decision not to battle in that arena anymore. The new Mazda3 entry level sits around the $21,000 level. That's where we think the hike was maybe just a little too high.

"If customers had better understood the value of the new model, then there wouldn't have been a problem. But our problem was that we were not successful in communicating the value of this model. We need to improve that.

"The people in that market are pretty price-conscious. We have to communicate these values in a more easy-to-understand manner."

And the Mazda3 wasn't alone, with the CX-5 also suffering a drop of 13.9 per cent in 2020.

But if Mazda had a problem communicating its pricing strategy, it appears to have solved it in Australia, with the brand undergoing a massive renaissance in our market to now hold a grip on its familiar position number two on the sales ladder.

That best of the rest status is a big deal in Australia. Remember, Toyota here is essentially unassailable, so position number two in Australia takes on a special meaning for our market.

In even better news for Mazda, the sales success is being felt right across the line-up. Old favourite the CX-5 is up almost 50 per cent so far this year (from 11,946 to 17,679), while the CX-9 has grown by almost 40 per cent (from 3,602 to 4,945).

The Mazda2 is shining (from 1,728 to 3,134), and the new Mazda3 –which copped much of the blame for the sales slump – is up nearly 14 per cent this year (from 8,459 to 9,607).

Finally, new metal like the BT-50 is doing its part, too, with the Isuzu twin up shifting 8,092 units so far this year, up from 4,481 units in the same period last year.

So is it time to admit we we were wrong about Mazda's premium push?

Andrew Chesterton
Contributing Journalist
Andrew Chesterton should probably hate cars. From his hail-damaged Camira that looked like it had spent a hard life parked at the end of Tiger Woods' personal driving range, to...
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