Summary of Key Issues
Changan Mazda is facing a multitude of crises: sales have plummeted from 309,400 units in 2017 to just 75,700 units in 2024, a decrease of over 70%. A large number of dealers have closed their doors, leaving car owners with no after-sales support. The company's transition to new energy vehicles relies on Changan Automobile's technology, resulting in the loss of its core competitiveness. The needs of existing customers are being neglected, leading to a decline in brand loyalty. What was once a profitable business has become a source of loss for Changan Automobile. Although it is temporarily retained as a testing ground for international expansion, its long-term survival is in doubt.
Detailed Analysis
1. After-sales Support Becomes a Major Problem
Many car owners purchased additional "double warranty" services from dealers to ensure convenient maintenance after purchasing their vehicles. However, these dealers have since closed, leaving them with no where to get repairs. For example, a car owner in Sichuan had to travel to another district for repairs, only to find that the dealer there had also closed, forcing them to go to a Hyundai dealership instead. This is not an isolated issue; searches on platforms like REDnote and Dongche Di reveal numerous complaints about Changan Mazda dealers closing across cities such as Chengdu, Zhengzhou, Chongqing, and Kunming, leaving car owners without access to necessary services.
This situation is a direct consequence of declining sales: dealers are unable to make a profit from selling cars (some even lose money on each sale) and thus choose to close, shifting the after-sales burden onto the customers.
2. Sales Plunge by 70%
In 2024, Changan Mazda's annual sales were only 75,700 units, a significant drop from 309,400 in 2017. A manager at a Beijing dealership reported that monthly sales were in the single digits, with most customers being loyal fans of the brand. Young people hardly visit dealerships, and even fewer are interested in their electric vehicles.
The reasons for the poor sales performance are twofold: first, the advantages of traditional fuel cars (such as Mazda's unique driving dynamics) have been overshadowed by newer electric models. Domestic cars in the tens of thousands of yuan range now offer features like 3-second acceleration and L2+ autonomous driving, while Mazda's flagship model, the Axela, does not even come standard with wireless CarPlay. Second, price cuts have been ineffective; a recent discount of 30,000 yuan on the Axela only hurt the brand's premium image, and its used car resale value is only 53.8% (compared to 70% for the BYD Tang L), making it even harder to sell new units.
3. Embarrassing New Energy Transition
To transition to electric vehicles, Changan Mazda collaborated with Changan Automobile to launch the EZ-6 and EZ-60 models. These cars are essentially rebadges of Changan's own Deep Blue electric vehicles, using Changan's EPA electric platform and range extenders while Mazda was only responsible for the exterior design and chassis tuning.
This approach has significant drawbacks: consumers look for advanced battery technology and smart features when purchasing electric cars, but Mazda's offerings lack these advantages. More importantly, Mazda has lost control over the technology, as any future upgrades or cost controls will be determined by Changan. As a result, new buyers will not associate Mazda with cutting-edge electric vehicles.
4. Neglected Old Customers
The brand's loyal customers from the past are now being neglected. For example, in June, none of the 13 posts on Changan Mazda's official social media account mentioned car repairs or upgrades. One old customer expressed the wish for more information on maintaining older models, but their request was drowned out by advertisements.
The neglect of old customers directly affects the brand's reputation. These loyal fans once considered Mazda to be comparable to BMW from Japan, but now feel that the brand does not care about them, which further contributes to declining sales.
5. Will Changan Abandon Changan Mazda?
In the short term, Changan Mazda remains an important part of its business, as its Nanjing factory serves as a global hub for exporting new energy vehicles (the EZ-6 is exported to more than 20 countries). However, if sales continue to decline and losses persist, Changan may decide to discontinue this partnership, similar to SAIC's decision to dispose of Skoda. Time is running out for Changan Mazda.
In One Sentence
Changan Mazda's struggles reflect the challenges faced by joint-venture brands in the new energy era: they have failed to keep up with technological advancements and have lost the trust of their loyal customers. They must either find their own core competitiveness or risk becoming a part of history.