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Premium bet didn’t pay off
Mazda’s premium experiment turned out to be unsuccessful. However, the company decided to fix the situation not with bigger discounts or extra power. Instead, the brand is betting on reminding buyers about safety and a few model updates.
In the first half of the year, sales of the three-row CX-90 in the U.S. fell by 24%, to 21,271 vehicles. The two-row CX-70 did even worse — down 29%, with only 5,974 sales. These are not the numbers Mazda expected when it developed this pair specifically based on American buyers’ tastes.
Rescue plan: safety instead of discounts
After returning to profitability in the last fiscal quarter, the company’s CFO Jeffrey Guyton admitted he was not satisfied with buyers’ attitude toward both large CX models. He has already outlined a plan to fix the situation.
“This situation is unacceptable for us,” Guyton told Automotive News.
He then spoke about a safety communications effort that has already helped one of the brand’s smaller crossovers gain positive attention. The updated CX-5 recently received the highest rating from the Insurance Institute for Highway Safety (IIHS). Mazda now boasts more Top Safety Pick Plus awards in its lineup than any competitor.
Tariffs and hybrids put pressure on sales
Of course, the fact that buyers may not have known about the safety of Mazda’s large crossovers is not the only reason for their failures. The CX-70 and CX-90 are subject to tariffs because they are imported from Japan. In addition, losing incentives for plug-in hybrids does not add optimism. And if you also factor in cooling demand for more expensive hybrid versions, it becomes clear why Mazda is looking for new arguments.
Mazda3 — unexpected leader
While Mazda is trying to save its new models, one of the oldest in the lineup is doing great. The current Mazda3 debuted back in 2018, but this year its sales have literally exploded. In July, deliveries jumped by almost 88%, and since the beginning of the year sales are up 28%. And this despite the model approaching its tenth birthday and receiving remarkably few changes.
What’s next
In this situation, Mazda will have to balance price, technology, and image. A safety campaign alone is unlikely to solve all the problems, because competitors in this segment offer more aggressive discounts, better lease terms, and a wider choice of hybrid systems. If the updates and new communications don’t work, the company will likely have to rethink the positioning of its flagship SUVs.
Meanwhile, the paradox is obvious: the old and more affordable Mazda3 gives the brand more reasons for joy than the ambitious large crossovers it bet heavily on. Perhaps this experience will tell Mazda what buyers actually expect.
