Mazda Motor Corp. managed to taper its net loss in its fiscal first quarter ended June 30, 2012 to JPY6.5 billion ($83 million) from JPY25.5 billion in the same period in the last fiscal year. The company’s net loss for the period is lower than the JPY7.5 billion yen average estimate of five analysts surveyed by Bloomberg.
The carmaker expects to return to profitability for the fiscal year ending March 31, 2013, and is already making moves like selling assets, shifting some production outside Japan and concentrating on fuel-efficient models. The company’s new CX-5 crossover sport utility vehicle was a huge success, posting sales figures that are more than double its full-year target of 12,000 units as of July 1, 2012, just barely five months after it was launched.
According to Koichi Sugimoto, a Tokyo-based analyst at BNP Paribas SA, the good sales for the CX-5 have benefited from the government subsidies in Japan, making up for their decline in China and Europe. Mazda posted 6.5-percent increase in global sales in the quarter to 299,733 units. The carmaker particularly posted a 44-percent increase in sales in Japan, thanks to government subsidies on fuel-efficient cars.
Mazda posted a 6.8-percent increase in sales in the U.S. to 61,774 units, while logging a 12-percent and 1.4-percent drop in sales in China and Europe respectively.
Mazda has said it will increase the production of CX-5 to 240,000 units a year from 200,000 to cater to increasing demand. Mazda will commence producing the Mazda6 sedan, fitted with its Skyactiv fuel-saving technology, this month. The automaker is planning to unveil eight new vehicles, increasing the ratio of vehicles using Skyactiv to 80 percent by March 2016.