Japanese auto maker, Mazda is planning to make a come back in the Indian auto market with a hatchback, most probably. It could also make India as an export hub for its vehicles. In a recent interaction with the media, Masamichi Kogai, Mazda President and CEO said that the company had done a lot of research on the market and analysed the aspects of coming back and using it as an export base. Mazda rejoins the domestic Indian market after a long gap of 4 years that followed due to the global financial crisis.
Stress for increased production on the international level is being heavily realised, especially for an auto maker like Mazda, which advocates Japan-based production for its export market. The company has chalked out a three year business plan according to which it has a target of cashing on an operating profit of $1.52 billion with sales count of 1.7 million vehicles in comparison to $1.21 billion of an operating profit on selling off 1.33 million units internationally in the current fiscal.
The company said that the final decision of Mazda's come back would be taken after the three year business plan ends as its current priority is the launch of new production plant in Mexico and also maintaining sales in North America and rest of the major market regions. The new plant by the firm that has been set up in Salamanca, 250 kilometres north west of Mexico City is likely to start operation by next year. It has intentions to play the lead in providing two of its most successful models, Mazda2 and Mazda3 to the showrooms of North America. If things work as per the companies expectations, it could also think of adding the manufacturing of models like CX-5 compact Sport Utility Vehicle (SUV).
Mazda ventured into the Indian market in 1983 with Punjab Tractors and was basically involved with the production and sales of tractors, buses, police personnel carriers, ambulances, water tankers and special vehicle. However, even after putting in so much of efforts, the company could not fair as it was expected. Therefore, it discontinued the manufacturing in March 2007 after which Swaraj Mazda Limited was tagged as SML Isuzu Limited. But then, situations did not seem to improve for this auto maker due to which this establishment was totally wiped off from the market.
As of now, Mazda has no plans to got up for a capital alliance and would concentrate on seeking a deal on the basis of per project. On being questioned about alliance with another firm, the company officials told that currently, there has been no discussions over it. It has stressed on the fact that there shall be no change in the company's scheme of maintaining its dependence on domestic production. As per experts, this strategy has brought the firm to suffer losses because of the rising yen prices. Whether Mazda fairs well in the Indian market or not is something only time will tell, but the situation of auto industry has only built up some stress on Mazda to rework on its operation in the Indian market.
